A debt-ridden NHS hospital is to be taken over and run by a private company in what will be a groundbreaking departure for healthcare provision in England.

Hinchingbrooke Hospital, a district general hospital in Cambridgeshire, will be run by one of five private sector organisations from next year, after the withdrawal of the only NHS organisation bidding for the contract.

Stephen Dunn, director of strategy for the East of England health authority, told The Times that no other bids were being considered for the next stage of the vetting process. He said that the decision should not be regarded as controversial, given the pressures on the NHS, and would set an important precedent for the future financing and development of high-quality health services. He said that several other health authorities had approached him for information about how East of England was running the selection process.

The successful applicant, which will be chosen by October, will be responsible for running the hospital, which has an annual turnover of £92 million, on a contract lasting seven to ten years. It will be the first time that the private sector has taken charge of a whole hospital, rather than being brought in to cover particular services such hip replacements.

The full story available from here : Debt-ridden Hinchingbrooke Hospital to be run by a private company - Times Online

At last, someone in government is starting to see there's sense in putting health services into private hands!

I am rather relieved that this considerable step, born from open constructive thought of all the options, rather than from limitations arising from dogma and ideology, has occurred during the death throes of Labour rather than a few months later under a newly elected Conservative government.

This way the empty but oft repeated accusation that the Tories want to destroy the NHS can be repelled.

This is certainly a way forward which should contribute to a reduction in the waste, inefficiency and unproductive working practices which are so widespread in the NHS. Since I don't believe in private ownership of the NHS, I was relieved to find the tender is fundamentally one of management, and does not include the the transfer of assets or employment obligations.