The healthcare company Circle is in talks to pull out of its contract to manage Britain’s first privately run NHS hospital, Hinchingbrooke in Cambridgeshire, as it blamed funding cuts and a surge in demand for accident and emergency services.
Circle Holdings said funding for Hinchingbrooke Health Care NHS Trust was cut by about 10% for the current financial year and the company had spent £4.84m to support the trust. Circle is allowed to withdraw from the contract if it spends more than £5m.
The company said conditions had got worse in recent weeks and that its franchise to operate the trust was not sustainable.
Great, that’s the point of the market. That failure is possible, that it happens. In fact, it’s the most important part of said market system: that things that don’t work get ditched.
Shrug. This of course means we want to have more such contracts let out to see if anyone can come up with a better way of doing it.