Kamis, 03 Mei 2012

Circle which runs NHS Hinchingbrooke hospital gets to keep £2m profit from surplus

Circle which runs NHS Hinchingbrooke hospital gets to keep £2m profit from surplus

By Sophie Borland

PUBLISHED: 08:15 EST, 3 May 2012 | UPDATED: 19:53 EST, 3 May 2012


A private firm that saved an NHS hospital from closure has been accused of putting profits before patients.

Circle, which runs Hinchingbrooke Hospital in Cambridgeshire, has signed a deal which will see it take at least the first £2million the trust makes annually.

Critics say this money should be used to pay off the hospital's £40million debt or ploughed back in to improving services and treatments.

Health care assistants at Hinchingbrooke Hospital: Circle say they have already made improvements to waiting times since taking over and will only take profits out of any surplus

Health care assistants at Hinchingbrooke Hospital: Circle say they have already made improvements to waiting times since taking over and will only take profits out of any surplus

In February the hospital, which serves 160,000 patients just outside Huntingdon, became the first in the NHS to be run entirely by a private firm. There had been fears that the hospital would have to close as it could not afford to pay off its debts.

Circle claims it has already made substantial improvements, and the hospital's AE department has gone from the worst in the region to the best.

But Christina McAnea, head of health at the Unison union, described the contract between the firm and Government ministers as a 'disgrace'.

'The hospital was already struggling, but the creep in of the profit motive means cuts will now be even deeper,' she said. 'And it is patients and staff that will pay the price.'

Critics say Circle will siphon off million from the debt-ridden hospital that could otherwise have been spent on patient care

Critics say Circle will siphon off million from the debt-ridden Hinchingbrooke hospital that could otherwise have been spent on patient care

RADIO SHOW FOCUSED ON PRIVATE FIRM'S PROFITS

Coverage of the deal on BBC Radio 4's Today programme yesterday focused heavily on the private firm's profits â€" but glossed over the substantial improvements it had made to the hospital.

When Circle's chief executive Ali Parsa tried to defend the contract and point out how the hospital had been turned around, he was interrupted by presenter Justin Webb.

But Unison representative Christina McAnea was left free to criticise the arrangement.

Labour health spokesan Andy Burnham said: 'The structure of this deal holds worrying implications for the future of the NHS.

'It gives Circle a financial incentive to make eye-watering cuts.'

Staff are still employed and paid by the NHS but Circle has control over exactly how each ward and department is run.

The contract â€" obtained by Health Service Journal â€" shows Circle will make at least £2million a year, and more than half of the hospital's total unless this exceeds £6million.

A Department of Health spokesman said: 'This deal has preserved this valued local service â€" had it not been agreed, the hospital may have had to close.'

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

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It's good to see that the NHS has finally tentatively dipped a toe into the sea of the REAL world. I'm staunchly pro-NHS but, without financial controls, the NHS is frittering away billions of taxpayer's money. It desperately needs a private sector mentality in business terms to deliver the service we expect and should be receiving for the amount of money poured in.

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this is only the start of things to come . do the majority of people know how deeply involved this firm is with the lib dems

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They talk of "profits" and "surplus", but these are weasel words, which mean whatever the utterers want therm to mean at the time they use them... it's a dodgy deal, otherwise why did they keep it quiet? The accountants will be working overtime to make the deal work in favour of the private owner, who's claims over "John Lewis-style" ownership have already shown their readiness to fudge the truth...

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WHAT ABOUT THE NHS BURSURY FUND THAT PAYS FOR TUITION FEES - BURSURY IE NOT A LOAN DOES NOT HAVE TO BE PAID BACK - CAN SOMEONE EXPLAIN WHY THIS NEVER RECEIVES MEDIA ATTENTION

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What's so bad about the company making a profit, if there is a net benefit to the NHS and the taxpayers? Running a business is not only about making a profit today. It is also about future profitability and you achieve that by providing a first class service or making a first class produc and keeping your customers happy.

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How much more are people prepared to pay to keep refilling the bottomless pit of money which the NHS waste?

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"I have commented many times on the state of my parents hospital in their home town, a dirty, filthy, untidy, smelly dump (and that was outpatients and the Emergency Room) - they have moved south and now attend Hinchingbrooke and both parents say what a wonderful hospital it is, clean, caring nurses, and different attitudes to them, with speedy appointments and responses to tests sent to them quickly. I just wish they had moved there sooner, they have been dealt with, with more dignity, more kindess and received far better attention on support than they ever did in the years of attending the dump in the Midlands." - Karen, ex pat USA, 3/5/2012 18:12 ---- The cleanliness problem started in hospitals when cleaning services went to private contractors. Nurses are overworked and underpaid and many these days do it just because it's a job not because they have the caring attitude that's really needed to be a nurse.

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"They have taken the previous badly run hospital over,it was very much in debt,they have in a short time much improved the hospital,they have to repay the debt within 10 years,they may well do that,give them a chance,a relation of mine has been in this hospital and pronounced it excellent,much better than the hospital he attended before,the waiting time for patients in NHS now it is a worldwide service have increased by 50% ,everyone against a bit of privatisation may change their minds when they or their family have to wait for treatment despite the fact they have in NI stamps all thereir working life."- Shirley, Birmingham, 03/5/2012 19:06 ---- Do you really think it will be any better when all that matters is profits? How do your utility bills now compare to inflation adjusted utility bills from the early 80's? Isn't privatisation wonderful. So instead of having NHS care you will put your life into the hands of an insurance company? You should read about the nightmares of that!

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As we know , Dave is the true blue CON man. What more can you expect? We will have our chance to put right the immoral antics of Dave, Clegg and George in the ballot box soon.

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The first down payment from the Tory Government to their backers. As a taxpayer I totally disagree with my taxes being diverted into the hands of greedy private companies but how can I stop this obscene Government taking my money in taxes unless I am one of the greedy bosses of these private companies who can afford greedy lawyers to help them evade tax? - The Man in the Street, England, 3/5/2012 20:25 So you rather the NHS lost £40million of your precious taxpayers' money rather than paying out £2 million to recoup that loss and more?

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