The largest tenders in the history of the English NHS, for community services in Peterborough and Cambridge - worth £750m and over £1bn, respectively - may fail. Capita, the big outsourcing group, which was bidding with private hospital group Circle Health, has pulled out of the bidding, alleging that the price demanded by the NHS is 25% too low. We look at the numbers, and at the chances for more functional outsourcing of hospitals.