Circle, the private company running Hinchingbrooke Health Care Trust, has posted an operating loss of £29.3m for 2012, according to company accounts.
The loss, posted by Circle Holdings in its annual results for 2012, which were published on 18 April, is more than a third larger than the £18.5m operating loss it racked up in the previous financial year. The company has previously said it plans to show an operating profit for 2014.
Circle’s share price fell this month and was 54.5p on 23 April. It was 120p in May 2012, according to the London Stock Exchange. The company maintains in its accounts that it will “grow in the years ahead”.
Circle said £11.3m of the operating loss resulted from one-off costs related to its new private hospital in Reading.
A Circle spokesman said: “Exceptional items this year largely consisted of one-off expenditure on land revaluation and costs associated with the opening of our new Reading hospital.”
The company’s overall pre-tax loss in 2012 was £30.4m, on revenues of £73.2m. The company posted a pre-tax loss of £32.3m on revenues of £74.6m in 2011, and pre-tax losses of £38.8m on revenues of £76.4m in 2010.
Meanwhile, separately, Circle has outlined proposals to divert clinical support work from its network of predominantly private hospitals to Hinchingbrooke Health Care Trust.
Its new five-year business plan for Hinchingbrooke, published in the trust’s April board papers, said the hospital’s back office work could be diverted to other facilities run by Circle in a move the company said would “increase productivity and efficiency”.
The business plan said: “Through a productive network model, many clinical support and back office services would be shared across a number of Circle sites to increase the productivity and efficiency of all sites.
“Hinchingbrooke Hospital could become the chosen site to provide radiology services to other Circle hospitals across
the country and, in turn, receive all its back-office admin support from a single shared service centre run from Nottingham.”
However, the proposals are in the early stages of development. A spokesman told HSJ that “no specific plans were on the table”.