Firms invited to take over 'failing' hospitals

The Government will invite bids today from private health companies, including Bupa, to take over the running of three "failing" National Health Service hospitals.

In a move that will reignite fears among Labour MPs about the backdoor privatisation of the NHS, ministers will publish a list of approved bidders to take over the three worst hospitals in England, which will be named in a written Commons statement.

Alan Milburn, the Health Secretary, will try to quell a Labour revolt by announcing that the six private health operators on his list of more than 70 bidders are outnumbered by managers from NHS trusts.

But Labour MPs believe that today's statement paves the way for the first takeover of a state-run hospital by a private health firm next spring, after the bids have been assessed. The management contracts will run for three years.

The hospitals to be taken over will be among the 12 that received "no stars" in the Government's performance ratings. The worst four trusts were named as Ashford and St Peter's; Portsmouth; Dartford and Gravesham; and Barnet and Chase Farm, north London. But six of the 12 are judged to have improved and others will be given the benefit of the doubt.

Mr Milburn will emphasise that he is sending in outside troubleshooters only as a last resort where the existing hospital management has shown no sign of improvement. He will also stress today that the bidders on his list of "franchisers" have been vetted by the independent health service appointments commission.