The NHS has purchased a 95-bed high-tech private cardiac hospital in London for £27.5 million.

The renationalisation of the Heart Hospital and its 162 nurses, surgeons, managers and ancillary staff - described by Department of Health insiders as a bargain - is the first since Attlee's Labour government set up the NHS and a reversal of the health service's current building policy.

The privately owned hospital went on the market after being refurbished with four operating theatres and 35 en suite rooms.