A hospital trust has had to abandon a plan for a new provider to rebuild and run its private patient unit.

Kingston Hospital Foundation Trust had announced One Healthcare Partners as preferred bidder to manage and develop private patient services from its main site in south-west London in December.

The plan would would have seen the firm replace incumbents BMI Healthcare.

In a statement sent to HSJ, the trust said: ”Since being appointed preferred bidder, One Healthcare has explored a number of options with the trust with the aim of constructing a new private hospital. It has now become apparent that no suitable commercial arrangement can be found that suits both parties.”

When HSJ reported the awarding of preferred bidder status in February, it was understood the new facility would comprise three operating theatres, three minor theatres and would do a mix of orthopaedic and oncology work.

The trust has now ended the procurement process and has gone out to market for a managing agent to run the unit for the trust. The unit, known as the Coombe Wing, has an annual turnover of roughly £5m. It has been run by BMI Healthcare since 2009.

One Healthcare Partners was founded in 2014 and is funded by investment company Octopus Healthcare.

It runs private facilities in Hatfield, Hertfordshire, and Ashford in Kent.