Taxpayers ‘picking up bill for NHS outsourcing failure’
First outsourcing contract labelled ultimately unsuccessful by MPs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The “taxpayer has been left exposed” by the failure of the first outsourcing contract where an NHS hospital was taken over by private operator, MPs have concluded.
Hinchingbrooke Hospital in Cambridgeshire was handed over by Circle Holdings in 2012 but the company announced it was pulling out of the deal in January, hours before the release of a highly critical report by the Care Quality Commission (CQC).
Inspectors uncovered a number of serious concerns about staffing, risks to patient safety and medical care as well as issues relating to the way in which the trust was run. It also became the first trust in England to be rated inadequate for caring. The findings have been disputed by Circle.
But in a report released today by the Public Accounts Committee, MPs said that while some financial risk had transferred to Circle, the NHS would still pick up a significant bill for the hospital’s financial failure. The PAC added it was concerned that none of those involved in the decisions have been properly held to account.
“It is clear therefore that the total deficit incurred during the franchise will be well above the level that Circle is contractually committed to cover, leaving the taxpayer to pick up the rest of the bill,” the report said. “The taxpayer has been left exposed by the failure of the franchise.”
Margaret Hodge, the committee chair, said the deal had proved to be an “ultimately unsuccessful experiment”.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments