A private company could take over Epsom Hospital in partnership with an NHS trust it has emerged.

Last week a national newspaper revealed that Circle Health is set to make a joint bid with the Royal Surrey County Hospital NHS Foundation Trust to take over Epsom Hospital as it demerges with St Helier in a bid to reach Foundation Trust status.

The employee owned company, set up by clinicians in 2004, has already been named as the preferred bidder to run Hinchingbrooke Healthcare NHS Trust in Cambridgeshire.

If successful, Circle Health will be the first private company in the country to manage an NHS hospital.

In an email sent to all staff at Epsom Hospital last Thursday the chief executive, Matthew Hopkins said the hospital only found out about Circle's involvement earlier that week and admitted he knew very little about it.

He warned staff that the story was likely to "generate specualtion" from the press, staff and patients but that details are unlikely to be available until the bid is submitted in November.

Mr Hopkins also told staff that Ashford and St Peter's NHS Trust, the second trust in the running to merge with Epsom Hospital, announced in June that its bid is likely to be in partnership with Central Surrey Health, a not-for-profit employee owned social enterprise, and The Royal Marsden NHS Foundation Trust.

Jan Sawkins, independent chair of the Transaction Board responsible for overseeing any merger, said that despite the Royal Surrey County’s plans to put forward a bid with Circle Health, rules state that the bid must continue to be led by the hospital.

When this newspaper contacted Circle Health to find out more it was told that it was not allowed to speak to the press about it and that all communication had to be approved by the Transaction Board at Epsom Hospital.

Nick Moberly, chief executive of Royal Surrey County Hospital said: "The Royal Surrey County Hospital NHS Foundation Trust is working closely in partnership with Circle Health to develop proposals to secure the future of Epsom Hospital.

"By blending the best of the NHS and social enterprise, we are looking to create an innovative and integrated model of care and provide a broad range of health and social care services for the people served by Epsom Hospital."

Former Liberal Democrat Councillor and Epsom resident, John Green, 67, said: "Being a private company their first duty is to their share holders and not to the people.

"I’m not against private medicine, but we will have to see how it runs in Hinchingbrooke."

Residents Association Councillor George Crawford, said: "I think the residents will be unsettled.

"We are all unsettled because its the unknown and the older we get the more we use the hospital and its going to be the older people who are most concerned.

"Councillors have not had any communication with the Circle group.

"We have had no communication from the Royal as to what exactly is involved, but when it comes to the bids in Novermber they must make clear what part Circle will play."

James Tarbit, from Epsom, said: "I'm of the opinion that things should be as transparent as possible.

"I'm very much of the opinion that as long as the NHS services are free I dont really care who delivers them and there's a fair amount of privatisation in the NHS already."

MP for Epsom and Ewell, Chris Grayling, said: "Having Epsom work together with the private sector is fine and nothing new.

"The important thing is that staff continue to work for the NHS.

"There is no question of Epsom being taken over by a private company.

"When the bids are in I will look very carefully at what’s being proposed."

The closing date for formal bids is November 11, after which the Transaction board will make a final decision in January 2012 based on criteria selected by public, patients and staff.

Epsom Hospital will be holding its annual public meeting on September 29 from 5 to 7.30pm giving residents the chance to put their questions to hospital bosses on the future of Epsom Hospital.

For more information visit epsom-sthelier.nhs.uk