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Ramsay rejected
Ramsay Health Care UK has had its bid to take over the running of Hinchingbrooke Hospital rejected.
The firm was turned down on the basis that its bid did not meet the requirements NHS East of England had laid down in stage two of the bidding process. Ramsay’s exit leaves Circle Health and Serco left in the fray with a decision to be made before the end of the year.
Kevin Jaquiss, public sector partner at Cobbetts LLP, said: ‘Hinchingbrooke has been forced to think differently and turn to alternative avenues when looking to resolve its current financial situation. While the Trust maintains control over its assets and staff, the successful bidder will take over the management of the hospital. With the final two bidders both from the private sector, the case goes to demonstrate the willingness and eagerness of the private sector to deliver health services. Following the White Paper, the rest of the health service will face in one way or another the choices Hinchingbrooke is facing. The Hinchingbrooke model is a means of keeping private sector involvement at arm’s length but it is likely that more innovative solutions will be explored from new employee led social enterprises, through to public-private joint ventures and straightforward privatisation.’
Earlier this year, the hospital’s management was put out to tender after debts of £40m were revealed. The franchise is expected to run for seven years with the option to extend the contract, the total value for which is thought to be in the region of £580m (HMN January 2010).
The six original bidders for the contract were: Cambridge University Hospitals NHS Foundation Trust, Care UK, Circle Health, Interhealth Canada (UK), Ramsay Health Care UK and Serco Health.
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