31 January 2012
Last updated at 19:25 ET
Hinchingbrooke serves a population of about 160,000 people
A private firm has become the first to start running an NHS hospital.
Circle, which is co-owned by doctors, has taken on managing Hinchingbrooke Hospital, Cambridgeshire, which had been threatened with closure as it grappled with £40m of debt.
Circle aims to find a solution to the debt problems of the hospital by attracting new patients.
Union Unison said although the hospital had been saved, it was concerned at involving private firms in the NHS.
The groundbreaking £1bn, 10-year deal will see Circle assume the financial risks of making the hospital more efficient and paying off its £40m of debts.
Circle said it wanted to work with the hospital’s staff to improve the safety of its services, and to minimise the number of times patients have to travel to the hospital for different appointments.
Specific timelines are being set for improvements in areas, such as the amount of time nurses spend with patients.
Changes will be led by units – each consisting of a doctor, nurse and administrator.
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