Private firms circle health trust

A Special Administrator was appointed to lead the trust in July, after Health Secretary Andrew Lansley put the organisation into the Regime for Unsustainable NHS Providers because of concerns over its financial viability.

Now the administrator, Matthew Kershaw, is seeking potential interest from both private providers and other NHS trusts over potentially taking charge of the trust.

The move could see a private operator brought in to run the site in a move pioneered at Hinchingbrooke Health Care NHS Trust, which appointed contractor Circle as its franchise partner to work with the trust over 10 years to cut its historic debt and improve use of its assets.

A similar approach could be introduced at South London NHS Trust, which has struggled with rising debts including two PFI deals.

Meanwhile, health minister Simon Burns has told the Daily Telegraph that seven NHS trusts struggling with their PFI repayments are to have ‘hit squads’ of government officials sent in to help find savings and renegotiate the contracts. 

The seven trusts were identified earlier this year as potentially needing help with their PFI repayments and a £1.5bn bailout fund was established to support those repayments if necessary.