I am not trying to score political points with the following comments, but the withdrawal of Circle from its contract at Hinchingbrooke is exactly what I have spoken about before. Private capital and private operators are not suitable to support and run the NHS because ultimately they are not permanent. By its very nature, investment capital seeks the best returns and when it can not find positive returns or the prospect of positive returns it usually withdraws and is re-invested elsewhere.
We saw this at the height of the credit crunch when private capital failed to support the banking sector, forcing the tax payer to become the ultimate funder. This pattern will be repeated continually in the health service whenever conditions do not make a positive return likely.
The Circle contract had break clauses based on accumulated loss levels within the contract. No private capital or service provider would enter a contract without these provisions, so it will always be the case that the private provider can walk away from their obligations leaving patients without critical services, and the taxpayer to pick up the bits.
Far better to stop this farce now and commit to state funding across the health service.
I wonder if there isn't more to it though. I mean that hospital was failing under the NHS, and Circle don't appear to have been able to make a go of it either. I wonder therefore what is really going on there that makes running a successful hospital so challenging? If we get bogged down in the private vs public debate then I feel that investigation will get overlooked.