- 6 updates
A flagship hospital in Cambridgeshire which is the first in the NHS to be run by a private firm, is to be placed in special measures after the company running it pulled out of the deal.
Circle has been running Hinchingbrook Hospital in Huntingdon for more than two years but says it's now not viable. Hospital inspectors rated the unit 'inadequate.'
Click below to watch our report from Matthew Hudson
Unions have reacted to the announcement by operators of the country's first privately run NHS hospital that it is withdrawing its contract, calling the move a "stark warning of the dangers of NHS privatisation".
Huntingdon MP Jonathan Djanogly says Circle's decision to pull out of their contract running Hinchingbrooke Hospital was a shock and a shame.
However he says unions and other critics of privatisation had used the hospital as a "political football".
Circle was the first private healthcare operator to run an NHS hospital trust. It is pulling out claiming it is "no longer sustainable" due to funding cuts and pressure on its casualty department.
Click below to watch Matthew Hudson's full interview with Jonathan Djanogly MP
The first private healthcare operator to run an NHS hospital trust is to pull out of the deal, claiming it is "no longer sustainable" due to funding cuts and pressure on its casualty department.
Circle Holdings said the level of cash it had pumped in to prop up Hinchingbrooke healthcare trust in Cambridgeshire was about to reach £5 million, meaning it would have the right to terminate the franchise.
A Department of Health spokesman said: "We're disappointed Circle has made this decision.
"There will now be a managed transfer of the running of the trust and patient care will not be affected."
The Chief Executive of the Circle Partnership, a private company which runs Hinchingbrooke Hospital in Huntingdon says its future with the NHS hospital is 'unsustainable' and that 'with great regret' it is looking to withdraw from its contract.
Circle took over the running of Hinchingbrooke in 2012 making it the only NHS hospital to be run privately in the UK.
The Chief Executive also said that times have changed since they took over the contract.
The company behind UK's only privately run hospital in Cambridgeshire is to pull out of its contract.
'Circle' has been running Hinchingbrooke Hospital in Huntingdon since early 2012.
Today the company said that 'with regret we have concluded that Circle's involvement in Hinchingbrooke does not have a sustainable future in its existing form and have entered into discussions with a view to withdrawing from the contract.'