An independent committee has accused the Department of Health of making "catastrophic" decisions over the decision allow a new hospital in a city, while a private firm was being hired to run another one 24 miles away.
According to the Commons Public Accounts Committee, the Peterborough and Stamford Hospitals Trust had accumulated a deficit of more than £45 million by the end of 2011/12.
The trust's financial position is now so serious that, even if it achieves challenging annual savings, it will still require significant financial support of up to £26 million a year for the next 30 years to remain viable.
More top news
Dippy the Diplodocus is to forced into retirement and moved out of the Natural History Museum's main hall.
Alice Biggar has managed to survive on cheap tins, heavily-reduced supermarket goods and even chicken bones from butchers.
People should go online to report crimes instead of dialling 999, Home Secretary Theresa May has claimed.