Company 'could lose £54m Somerset healthcare contract'

  • Published
CareImage source, Thinkstock
Image caption,

The care service provides district nurses, health visitors and social workers to some of the most vulnerable and housebound

Virgin Care could see a £54m-a-year contract to deliver health and care services withdrawn.

Councillors and clinicians in Bath and North East Somerset were told on Wednesday the company had been acquired by private equity firm Twenty20.

Council leader Kevin Guy said the latest deal with Virgin Care had not been signed off.

Campaign group Protect Our NHS feared the takeover could mean cuts in staff and services to boost profits.

HCRG Care Group disputes this claim.

Virgin Care took over services in the area in 2017, signing a seven-year contract.

It is currently responsible for two community hospitals, outpatients' clinics, school nursing and immunisation services, plus wellbeing services and some social care services.

Its contract with Bath and North East Somerset Council (BANES) was renewed for five years in November, according to the Local Democracy Reporting Service.

However, it has now been acquired by Twenty20 Capital and rebranded as HCRG Care group.

But the sale was not disclosed to councillors during contract negotiations.

Image source, Pam Richards
Image caption,

People demonstrated in July against private companies sitting on decision-making boards

HCRG Care Group said the announcement was made soon after the change was agreed and residents will see no cuts to staff, services or a difference in the care they receive.

Speaking on BBC Radio Bristol, Mr Guy said: "We were informed of this at the same time as Virgin Care employees.

"During our entire negotiation period to extend the contract by three years we weren't made aware of these negotiations.

"That's a disappointment.

He said the council and the local Clinical Commissioning Group (CCG) were looking at the options available.

When asked if they could pull out of the deal, a three-year extension jointly agreed with the BANES, Swindon and Wiltshire Clinical Commissioning Group, he said: "That option is always on the table".

In a joint statement, BANES Council and the CCG said they are "carefully considering" the implications of the announcement.

'Confirms worst fears'

Campaign group Protect Our NHS voiced concerns the takeover could mean cuts in staff and services to boost profits.

A spokesperson said: "Protect Our NHS has consistently opposed the privatisation of health and care services."

HCRG Care Group boss Dr Vivienne McVey, who will stay on as chief executive after the rebrand, said: "Although our owner has changed and our name has changed, everything else remains the same."

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