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05.01.11

Private provider taking over at NHS trust now building its own hospital

Work is to start this month on the second UK hospital of a staff-owned consortium that has been making inroads into taking on NHS services.

Circle, which opened its first hospital in Bath last year, winning design awards and good patient feedback for quality of care and food, is starting work on a new facility in Reading with five operation theatres, 30 rooms and 18 day-surgery beds.

In November, Circle became the first franchise to take on the running of an NHS acute hospital, when it was made recommended bidder for Hinchingbrooke Hospital in Huntingdonshire. NHS East of England denied the deal was tantamount to privatisation and guaranteed the staff and assets of the hospital would be protected thanks to the innovative franchise agreement. Subject to DoH and regulator approval, it will take over operations in June.

It also has day-surgery facilities at Nottingham and Burton, treating 130,000 NHS patients a year.

Ali Parsa, Circle’s managing partner, said: “Circle was founded to redefine healthcare delivery in this country. Patient and GP reaction to our first hospital – CircleBath – has been phenomenal. We have now set our sights on transforming the hospital experience and quality of care available to patients in Reading.”

Circle, which is co-owned by 2,000 of its staff, said the Reading deal was “a breakthrough in the UK development finance freeze”.

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