Circle Healthcare, which has been finalized as the first private firm to take over a NHS hospital, has said that is planning to significantly expand its NHS business besides establishing independent hospitals in the UK.

Circle Health has bagged a £1 billion contract to take over the running of Hinchingbrooke hospital in Cambridgeshire. The private firm has said that it is looking to acquire more NHS hospitals but admitted that patient care might be affected.

The debt-ridden Hinchingbrooke Hospital would face closure without the takeover. Circle Healthcare will have a full control of hiring and firing staff under the contract with duration of ten years.

The private firm is required to maintain A&E and a maternity unit and it can decide upon operating others units. The private firm will not receive any funding and in addition it will have to clear the hospital's £39million debt. The private firm will earn profits by cutting costs and treating more patients.

The Hinchingbrooke was earlier facing a closure in 2006 but was saved by a public campaign that year. However, its debt increased to 39million and the hospital was loosing £4million a year.

Some opposition and union leaders have criticized the move terming as privatization of the NHS.

"Circle's growth has placed, and its anticipated growth will continue to place, a strain on its managerial, administrative, operational, financial, information technology and other resources and could affect its ability to provide a consistent level of service to its patients," the company said.