‘Commercial barriers’ stop ICS buying private hospital

Hertfordshire and West Essex Integrated Care System was exploring a proposal to purchase the One Hatfield facility, to expand its elective activity and reduce waiting lists.

According to a report to the East and North Hertfordshire Trust board last week, there had initially been plans to expand an NHS treatment centre at the Lister Hospital in Stevenage, but they were complicated by the “emergence of a potential option” to buy the private hospital.

The paper said that during May and June it had become clear that “commercial barriers” in respect of One Hatfield were “unlikely to be overcome”.

It added: “A transaction to purchase the facility by the NHS would be extremely problematic. As such, the ICS has asked that work to finalise configuration options at the [Lister Treatment Centre] are prioritised and finalised.”

In January, NHS providers were encouraged to develop bids for the creation of additional elective surge capacity, to improve waiting times in line with NHS planning guidance targets.

Neither the ICS nor One Hatfield would answer specific questions from HSJ, such as what the complications were that prevented the deal.

Jane Halpin, chief executive of Herts and West Essex ICS, said: “Although we cannot comment on commercially sensitive information, we can confirm that we have recently asked East and North Hertfordshire NHS Trust to progress a business case to increase elective surgery capacity at Lister Hospital in Stevenage, which is close to major road networks and so could help establish an elective surgery hub serving a wide population.”

A spokesman for One Healthcare, which runs One Hatfield, said: “[The] hospital works closely with the NHS and is always willing to explore opportunities that will enhance our service provision to local people. As a well-invested best-in-class hospital, we are often approached by external parties keen to expand their footprint.”

The company runs one other hospital in Kent.

In January, NHS England also guaranteed to pay independent providers around £225m between then and March to reserve capacity in case of a covid admissions surge, as omicron surged.

In June last year, the Royal United Bath FT announced it bought Circle Bath private hospital – renamed Sulis Hospital Bath – to increase capacity.