Warwick Hospital may pull out of takeover bid

But he has stressed this is because South Warwickshire NHS Foundation Trust would not be allowed to run the George Eliot Hospital in Nuneaton in the same way it runs its Warwick, Stratford and Leamington services.

The trust announced its interest in creating a county-wide body after bosses in Nuneaton admitted they could not turn the George Eliot around.

Under Government changes, every hospital in the country must become a foundation trust by 2014 or face being taken over. Bosses at the George Eliot Hospital last year admitted this was unlikely and invited bids.

Among three private and three NHS groups, the south Warwickshire trust wanted to run the George Eliot Hospital along similar lines to Warwick Hospital, with both community services such as district nursing and an acute care hospital.

But the Midlands’ strategic health authority might only give the option of running the Nuneaton site as a franchise, with management groups brought in for a set term.

Warwick Hospital chief executive Glen Burley said the trust wanted to make clear it was not simply walking away, but may feel that it could not continue.

Mr Burley said: “We think creating an organisation that joins up hospitals and communities and joins up Warwickshire gives us the best opportunity to deliver affordable, high quality services to patients.”

South Warwickshire Foundation Trust runs district nursing, health visiting and community therapy services, which Mr Burley said helped avoid unnecessary trips to hospital for those in need of long-term care.

Warwick Hospital has also suggested it could send consultant paediatricians to the George Eliot and share IT systems.

The only example of a franchise currently operating is Hinchingbrooke Hospital in Cambridgeshire, which private firm Circle Health took over for a ten-year term in February.

Mr Burley said franchises would not offer a permanent solution or be accountable to the community, unlike foundation trusts which draw board members from the areas they serve. He also doubted whether private firms would attract outside investment, instead looking for efficiencies.