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The City roundup video: Circle Holdings to end contract with Hinchingbrooke Hospital

Video: Oscar Williams-Grut provides a run-down of the day's major news from the City

Oscar Williams-Grut
Friday 09 January 2015 08:11 EST
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(Dan Kitwood | Getty Images)

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A bout of finger pointing is set to break out today after the operator of the only private NHS hospital said it was throwing in the towel

Circle Holdings took over the running of the troubled Hinchingbrooke Trust in early 2012 after a tender process started by the previous Labour government

But today it said it was handing responsibility back to the taxpayer, saying government spending cuts and the unprecedented increase of A&E patients meant it was now “unsustainable” to operate the hospital as a franchise.

The failure of the contract, which was expected to last for ten years, is a severe blow to both Circle’s reputation and controversial measures to part privatise the NHS

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