Circle Pulls Out Of Hinchingbrooke Franchise

Circle Holdings has pulled put of its franchise to operate Hinchingbrooke Health Care NHS Trust confirming it is "no longer sustainable" under current terms.

Circle took on Hinchingbrooke in 2012 when it was facing closure.

Funding for Hinchingbrooke has been cut by over 10% this year.

In a statement Circle said: "It was described as a 'basket case'.  We invested in the quality of care, in staff and in facilities. Now, it has won a number of awards. It consistently hits the most important outcome measures, including low mortality rates, excellent patient feedback, and meeting all major waiting time targets. In the first two years of the franchise, Circle made financial savings significantly above the NHS average. We have saved the taxpayer approximately £23 million.

"Circle has the right to terminate the franchise in the event that it is required under the contract to make aggregate support payments to Hinchingbrooke in excess of £5 million. To date, Circle has made payments totalling approximately £4.84 million. There have been significant changes in the operational landscape for NHS hospitals since the contract was originally procured in 2009, including unprecedented increases in accident and emergency attendances, insufficient care places for patients awaiting discharge, and funding levels that have not kept pace with demand. These conditions have significantly worsened in recent weeks and, save for the £5 million cap on aggregate payments, it is highly likely that Circle would be obliged to make further support payments that would exceed the £5 million cap."

Steve Melton, Chief Executive of Circle, said: "Like most hospitals, over the past year Hinchingbrooke saw unprecedented A&E attendances and not enough care places for healthy patients awaiting discharge. At the same time, our funding has been cut. We also believe that inconsistent and conflicting regulatory regimes compound the challenge for acute hospitals in this environment.

"This combination of factors means we have now reluctantly concluded that, in its existing form, Circle's involvement in Hinchingbrooke is unsustainable.

We have entered into discussions with the Trust Development Authority, and the patients of Huntingdon are our absolute priority in these talks. 

I would like to pay tribute to the amazing work of our staff. I will be speaking personally to them over the coming days and weeks. I've been humbled by the compassion, dedication, and professionalism of doctors, nurses, and managers. The hospital's remarkable improvement over the past two years is a credit to them."

(CD/IT)