The damning report published on Tuesday concludes that the DoH left a£900m construction project to local NHS staff 'who were rapidly out of their depth and floundering'.
Committee chair Edward Leigh said that the 'amateurism and incompetence' of local NHS managers compounded the consequences of bad decisions at the outset.
'The lessons from this sorry story are many,' said Mr Leigh. 'The DoH, faced with a hospital building programme estimated to cost£4bn more than the approved costs, must crack down on NHS trusts where costs are forecast to rise by more than 10 per cent.'
Mr Leigh said the DoH must consider whether its private finance unit was up to the job of supporting local NHS trust procurement teams.