Circle, which took over Hinchingbrooke hospital in Cambridge earlier this year, may put profits over jobs, unions warn

The first private company to take over an NHS hospital could make a profit of £31m in the next decade in a deal that the government’s spending watchdog warns would rely on unprecedented levels of savings.

Circle Healthcare, founded by former Goldman Sachs banker Ali Parsa, runs four private treatment facilities and one NHS treatment centre and took over Hinchingbrooke hospital in Cambridge in February. Before being handed over to Circle, the hospital had been in trouble, losing five chief executives in as many years and building up £40m of debt.

The National Audit Office reveals that Circle has already missed its own financial target, generating a deficit of £4m by September – £2m behind where Circle said it would be. The company admitted that on current projections it would end up bearing £3.5m in losses this year, which it would fund.

The report warns that “Circle’s projected savings of £311m over 10 years are unprecedented as a percentage of annual turnover in the NHS… Circle’s bid did not fully specify how it