In a desperate attempt to cut costs in the NHS the government awarded Circle Health the management of Hinchingbrooke hospital in Cambridge. The company is run by a former Goldman Sachs banker, and the move was hailed by government ministers as "a good deal for patients and staff". "The first private company to take over an hospital has admitted in a document seen by the Observer that patient care could suffer under its plans to expand its empire and seek profit from the health service. Circle Health is already feeling a strain on resources due to its aggressive business strategy, the document reveals, and the firm's ambition to further expand into the NHS "could affect its ability to provide a consistent level of service to its patients", it says." (Observer, 13 November) In view of the company's own appraisal it would appear the government's forecast of "a good deal for patients and staff" could prove to be well wide of the mark. RD
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