Equipment contract change to cost Oxfordshire £1m

Oxfordshire County Council had been using NRS Healthcare to supply medical equipment - but the BBC understands the company is on the brink of going bust

A sudden change in providers for medical equipment is set to cost Oxfordshire County Council almost £1m.

The authority had been using NRS Healthcare for supplying things like hospital beds and hoists - but the BBC understands the firm is on the brink of going bust.

From August 1, a new contract will begin with Millbrook Healthcare.

The government said it was closely monitoring the situation and working with a "range of partners" to minimise any potential disruption.

'Bad news for councils'

NRS Healthcare, which works with the NHS and about 40 councils in England and Northern Ireland, is expected to run out of cash by the end of the week, the BBC understands.

In a letter, sent to the government early in July and seen by the BBC, councils warned of "a devastating impact" and "risk to life" and asked for a short-term loan for NRS while new arrangements were put in place.

It is believed no loan was offered, but most councils have now managed to get plans in place to keep services running.

Tim Bearder, the Liberal Democrat councillor in charge of social care at Oxfordshire County Council, said the sudden contract change would initially cost the authority almost £1m.

He said using the new provider would also be more expensive in the long run.

"The previous government and this one seemed content with an ever-reducing number of suppliers in this market," he added.

"So there's really only three - and this has been reduced...down to two, which is a very near monopoly.

"That's very bad news for councils; making it harder to negotiate contracts at a viable price and generally to negotiate what's in the best interest of local residents."

In a statement on Wednesday, NRS Healthcare said the firm had been working hard over the past few months "to turn around the business and explore all possible options to safeguard services and protect the communities who rely on them".

"We have already begun transferring all services to other providers and are implementing plans with the local authorities to preserve service provision and jobs," said a spokesperson.

In a statement, a government spokesperson said: "We are closely monitoring this situation and are working with a range of partners who are supporting local authorities to minimise any potential disruption, find alternative suppliers if needed and ensure patients continue to receive high-quality care."