Andrew Lansley's NHS is all about private sector hype
Circle has little know-how on running a hospital the size of Hinchingbrooke, but that doesn't seem to bother the government
The government's decision to sign a 10-year contract worth £1bn for an untested private company to manage the heavily indebted Hinchingbrooke hospital really is the triumph of hype over experience.
The hype has come thick and fast from Circle Healthcare's smooth-talking boss, former Goldman Sachs banker Ali Parsadoust (known as Ali Parsa), who gives the impression that Circle is some kind of altruistic workers' co-operative, while in fact it is controlled by private equity and hedge funds. Far from handing control to the workers, Circle takes a negative view of trade unions and will have to resort to old-fashioned cuts in the workforce if it is to generate the "efficiency savings" it needs to put the hospital into surplus.
More hype has come from the architect of the contract, NHS East of England's director of strategy Dr Stephen Dunn, an enthusiastic advocate of private sector provision (which he denies is privatisation), whose unstinting efforts to secure this deal won him an award this year from HealthInvestor magazine.
But there is little in Circle's record to justify Dunn's belief that the company has the expertise to take on a project on the scale of Hinchingbrooke. The company has yet to make a success even of running its two tiny (30-bed) private hospitals, which were extravagantly expensive to build, and has run up six years of losses so far: hardly a good base to take on the bigger challenge of managing of a debt-ridden NHS general hospital 10 times the size and many more times more complex.
<
http://www.guardian.co.uk/commentisfree/2011/nov/11/andrew-lansley-nhs-private-sector-circle>