Hinchingbrooke Hospital

David Heath Excerpts

Thursday 10th November 2011 Commons Chamber

[Fabian Hamilton (Leeds North East) (Lab)]

The Minister said in reply to an earlier question that there would be no forced redundancies. However, as he explained, Circle will pay off the deficit over a period of time and has an obligation to make profits for its shareholders. Can he explain how it will manage to do that while paying off the deficit?

[The Parliamentary Secretary, Office of the Leader of the House of Commons (Mr David Heath)]

Did they not understand the policy when they voted for it?

[Mr Burns]

My hon. Friend makes a valuable point from a sedentary position. The driving force behind the arrangement and the key criterion for Circle is the need to turn the hospital around, with regard to its quality and standard of care and its finances. The challenge for Circle is to eliminate completely the £39 million historical deficit over the 10-year period and put the day-to-day running costs of the hospital on a firm footing. I am confident that, within the framework of the agreement, that offers the best change to turn the hospital around.