NHS: Hinchingbrooke Hospital

Lord Beecham Excerpts

Thursday 10th November 2011 Lords Chamber

[Earl Howe]

My Lords, so serious were the problems of Hinchingbrooke, both clinically and financially, that frankly the alternative to a franchising solution might have been closure of the hospital. I think that Ministers in the previous Administration reached that conclusion. It is one of the largest accumulated deficits that we have ever seen in any hospital. The problems facing Hinchingbrooke are therefore very significant.

[Lord Beecham]

My Lords, given the number of trusts that are in financial difficulties, can the Minister indicate whether he anticipates any further moves of this kind? If so, what processes would the department wish to see in place to ensure both value for money for the taxpayer and the highest possible clinical standards after any such transfer of responsibility?

[Earl Howe]

My Lords, we do not envisage any other solution of this kind in any other trust. Of course, close monitoring will be necessary, and the contract with Circle is very clear in this instance—it has to perform according to the specification. As I said earlier, if it does not turn the hospital around, the financial risk up to £5 million of deficit, cumulatively, lies with it. I believe that this is extremely advantageous for the taxpayer. On the clinical side, of course the CQC will be extremely concerned to ensure that quality of care is not just turned round but significantly improved.