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Monday, October 02, 2006

First NHS hospital privatisation-- 60 more may follow

A foundation hospital trust is planning to "takeover" a smaller cash strapped NHS hospital in what is thought to be the first privatisation of its kind. The Heart of England NHS Foundation Trust in Birmingham hopes to acquire Good Hope Hospital, which is £15m in debt.

The story of Good Hope hospital in Birmingham - "No Hope" to its critics - is a chapter in the story of the modern health service.

It's likely takeover by Heart of England, its city neighbour, dramatises the way the Labour government's market driven approach is forcing hospital managers to confront issues more associated with the boardroom than with the National Health Service administrator's office of old. And fragmenting the supposedly "National" Health Service.

Ordinary mergers create a new trust but in this case Good Hope, in Sutton Coldfield, would be formally dissolved.

Good Hope became the first hospital in the country in 2003 to be run by a private company when its star rating dropped from the highest of three stars to no stars.

Heart of England Trust entered into a management contract with the hospital in November 2005 that saw chief executive Mark Goldman running both hospitals. The idea for the merger was put forward by Good Hope's foundation development board as "the only way" for the hospital to reach foundation status by the government's deadline of 2008.

The foundation trust currently includes Heartlands Hospital, Birmingham Chest Clinic and Solihull hospital.

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