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Masthead Healthcare - Procurement and Contracts

Virgin Care and CCGs settle procurement dispute over childrens services contract

Virgin Care is understood to have been paid compensation by clinical commissioning groups in Surrey CCG after it lost a contract to provide children’s health services in part of the county.

It took High Court action last March against the county's six CCGs, other NHS bodies and Surrey County Council over the circumstances in which it lost the £82m, three-year contract, which was instead awarded to Surrey Healthy Children and Families, a joint venture of Surrey and Borders Partnership NHS Foundation Trust and social enterprise Central Surrey Health.

Virgin Care spokesperson said at the time there had been “serious flaws in the procurement process”.

The case now appears to have been resolved as board papers for NHS Surrey Downs – one of the other CCGs involved – briefly became public and indicated its liability in the settlement with Virgin Care was £328,000, the Daily Telegraph has reported.

A spokesman for Virgin Care said: "The parties are pleased to confirm that an agreed resolution on the litigation concerning the Surrey children's procurement has been reached to a satisfactory conclusion for all parties with detailed terms confidential to the parties."

Mark Smulian

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