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.
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Colder but clear this evening
Two teenagers found dead at the foot of a sheer drop at Huntcliff have been named as 17-year-olds Alex Yeoman and Harry Watson.
Violet Grace Youens died in hospital a day after she was struck in a suspected hit and run as she walked with her grandmother in Merseyside.