MPs attack officials over Hinchingbrooke privatisation "debacle"
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Version 0 of 1. The health officials who privatised the first NHS hospital, a deal which collapsed last month, were criticised severely for failing to take into account rising patient demand by the chair of the powerful public accounts committee. In angry exchanges Margaret Hodge queried how a £100m a year “ambitious” contract to run the hospital could have been let on the basis of flat demand. When Circle, a private company largely owned by hedge funds, took over the running of 350-bed Hinchingbrooke in 2012 Department of Health officials told MPs on the committee that “ financial viability of the [hospital] can be secured”. In January Circle said it would be withdrawing from the bid, complaining that it could not cope with rising A&E numbers at the same time its income had been cut through fines levied by GPs and regulatory-enforced cuts on the price it charged for operations. “It isn’t rocket science ... to see [Circle’s] plans did not add up, but who is the accountable person,” demanded Hodge. She said that Sir Neil McKay, chief executive of the then Midlands and East Strategic Health Authority who signed off the contract, should have attended the session today. McKay, said Hodge, was working with NHS organisations in Manchester and said that MPs wanted to know how much he was paid given his record. Hodge also questioned why there had been no “risk assessment” made by David Flory, the boss of NHS Trust Development Authority, and who had previously vouched for Circle’s ability to deliver £311m in savings. Flory admitted to MPs that “demand was greater than expected”. Circle’s chief executive, Steve Melton, said that admissions to accident and emergency had gone up 18% in the last year. “There were no measures ... close to the horizon to give relief to Hinchingbrooke to make the financial model sustainable,” Melton told MPs. He also said that despite losing Hinchingbrooke Circle should be making a profit “in a year or two” – after eight years of losses. There were heated arguments over a scathing report into patient care by the Care Quality Commission. Hinchingbrooke’s chief executive, Hisham Abdel-Rahman, and Tory MP Stewart Jackson attacked the CQC, questioning the motives of the regulator. Abdel-Rahman claimed that many of the patient care lapses had been misinterpreted, pointing out that in one instance a doctor shouting at a patient was explained by the fact the person was deaf. David Behan, the head of the CQC, accepted that about 200 “errors” had been made in draft inspection reports but stood by the final report. Jackson, a local Tory MP, suggested that since the 30-strong inspection team contained doctors who had previously professed strong anti-privatisation views the report might be coloured by their prejudices. Behan denied this was the case, but did concede in the future that inspectors would have to declare relevant interests. MPs on the committee are investigating if the public lost out when the NHS decided to franchise a district general hospital. In evidence to the committee, the department of health’s finance director, Richard Douglas, said that no new hospitals would be let out in the forseeable future. |