In February 2012, Circle Healthcare took operational control of Hinchingbrooke Health Care NHS Trust in Cambridgeshire, becoming the first private company to run an NHS hospital. On 9 January 2015, some 3 years into the 10-year operating franchise, Circle announced that it had entered into discussions with the NHS Trust Development Authority with a view to withdrawing from the contract. Circle cited unprecedented A&E attendances and funding cuts as factors in its decision. Also on 9 January 2015, the Care Quality Commission published results from an inspection conducted in September 2014, which rated the Trust as "inadequate". Hinchingbrooke was the eighth hospital to receive this overall rating under the CQC’s new inspection regime. As a result, the Trust was placed in ‘special measures’ by the NHS Trust Development Authority.
The Committee reported on the franchising of Hinchingbrooke Health Care NHS Trust in February 2013. The Committee was concerned that “Circle’s bid was not properly risk assessed and that Circle was encouraged to submit overly optimistic and unachievable savings projections. While some financial and demand risk has been transferred to Circle, the NHS can never transfer the operational risk of running a hospital leaving the taxpayer exposed should the franchise fail.” This inquiry will explore the causes and consequences of Circle’s plan to terminate the contract, and any lessons learnt; challenge the witnesses on what is being done to safeguard patients at the Trust; and examine the financial sustainability of services at Hinchingbrooke and the implications for the wider local health economy.
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