Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, with reference to the 46th Report of the Public Accounts Committee, Session 2014-15, HC971, An update on Hinchingbrooke Health Care NHS Trust, what the cost is to the public purse of Circle Holdings Plc's withdrawal from delivery of its contract to run Hinchingbrooke Hospital; and if he will make a statement.

The Trust paid no management fee to Circle under the contract. Costs incurred by the Trust as a result of the termination of the franchise were agreed as £130,000 and billed directly to Circle. Costs included recruiting to new Board positions and those filled by Circle partners; an expected increase in the scope of External Audit due to termination of the contract; time of the Department’s Legal and NHS England Estates teams; and removing the Circle branding from the hospital.

During the operation of the franchise agreement, the Trust received £5 million from Circle between 2012 and 2014 - the maximum deficit support payment required under the contract.