Firm seals deal on NHS hospital
10 November 2011 Last updated at 09:32 GMT
Private firm, Circle, is taking over the running of Hinchingbrooke hospital in Huntingdon, Cambridgeshire.
Circle will assume the financial risks of making the hospital more efficient and pay off its debts but the hospital will stay in the NHS.
CEO of Circle, Ali Parsa, said the company has always re-invested profits back into services.