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“Eye watering” cuts predicted at Hinchingbrooke

The Guardian - 3rd May 2012 2:24 pm

The boss of the first private company to run an NHS hospital has promised to pay off £40m of public debt, prompting unions to warn that this will “hit patients and staff as drastic cuts will have to be made to health services and jobs”.

Ali Parsa, the chief executive of Circle Healthcare, said the 10-year deal to run Hinchingbrooke hospital meant his company aimed to make at least £60m in profits from £1bn in NHS revenues.

“We are about saving a local hospital that was threatened with closure. It was on course to lose £230m over the next 10 years,” he said.

While the company claims it will improve standards, to make money unions say it will need to make what have been described as “eye watering” cuts.

Read more in The Guardian.

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2 responses to ““Eye watering” cuts predicted at Hinchingbrooke”

  1. joshek says:

    this will be the litmus test: if circle healthcare manages to cull the paper shufflers - good on them. everyone doing real work in the nhs will applaud the loss of these “jobs”!

  2. Kathy teale says:

    Where will savings come from? Will they stop governance/training/IT support/audit? Do we let private hospitals off all these thing because they’re expensive? - the fact is that private health systems ALWAYs spend more on bureaucracy than non- market systems, because there’s much more paperwork involved in recording,charging,recharging,reporting,costing etc etc & that’s even before we see the introduction of top-up charges & insurance copayments…a real administrators” feasting frenzy! There are afew efficiencies they can enforce possibly - like trying to get their theatre lists starting on time - but that won’t save the millions necessary.
    I predict that job losses will Iinvolve a small number of middle grade managers whose work will have to be picked up by overworked colleagues, but mostly frontline staff in the form of service reductions. Watch & learn - short term window dressing (nice meals etc) will soon be overshadowed by less popular moves… And remember the first chunk of savings from this go the company’s shareholders, not into service development as they would in an NHS hospital.

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