NHS: Hinchingbrooke Hospital

Lord MacKenzie of Culkein Excerpts

Thursday 10th November 2011 Lords Chamber

[Earl Howe]

The accumulated deficit is approximately £39 million; part of the arrangement specifies that Circle will work towards paying off that deficit over the 10 years of the contract.

[Lord MacKenzie of Culkein]

I understood the chief executive officer of Circle Health Ltd to say on television this morning that his organisation was a social enterprise on the Waitrose model. My understanding of Waitrose is that all employees are partners and that profits are either paid back to the partners or reinvested in the company. Is that the situation with Circle Health Ltd?

[Earl Howe]

My advice is that Circle is part-owned by its employees; more than 50 per cent is owned by them. The remaining share of the ownership is by private sector investors.