Virgin poised to lose £23.8m child health contract

The private healthcare firm currently holds the contract to provide children's health and wellbeing services in Devon and Torbay.

But following a tender process, the two clinical commissioning groups (CCGs) for the area is set to appoint Devon Children and Families Alliance, which includes local NHS trusts, to run the service.

The alliance has been nominated as the preferred bidder for the contract by Northern Eastern and Western Devon (NEW Devon) CCG and South Devon and Torbay CCG.

The seven-year contract, which has the possibility of a three-year extension period, begins from April 2019.

Included in the contract are child and adolescent community mental health services (CAMHS), looked-after children nursing, learning disability and autism support as well as speech and language therapy, school nursing, palliative care and occupational therapy and physiotherapy.

In a joint statement the trusts said that "preferred bidder status is not he same as an award decision, with any formal award decision made in due course".

The move to nominate the alliance, which includes Torbay and South Devon NHS Foundation Trust, Devon Patnership NHS Trust and social entreprise Livewell Southwest, follows a public consultation which received 900 responses, including from parents, children and carers.

The consultation highlighted priorities including strong communication between healthcare organisations, quicker response times and providing a single point of contact for integrated services.

"The CCGs have run an extremely robust and inclusive procurement process over the last two years and the involvement of parents has been vital," said Dr Tim Burke, chair of NEW Devon CCG said,

"Participation by parents and children has helped ensure that we have remained true to the things that are most important the children and young people and their families throughout this process."

Torbay and South Devon CCG chair Dr Paul Johnson, added: "The engagement process really informed the services that we have designed and that will be developed over the next seven to 10 years.

"Children and families have been involved every step of the way, from giving us their feedback to participating in the selection process for the new providers. They will continue to be actively involved moving forward in ensuring that services are child and family-centred."

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In August Lancashire County Council said it would reconsider its November 2017 decision to appoint Virgin Care to run public health services for 0- to 19-year-olds under a five year contract worth £104m.

The Virgin bid had been preferred to a rival one from Lancashire Care NHS Foundation Trust in partnership with Blackpool Teaching Hospitals Foundation Trust.

But in June the High Court backed a legal challenge by the health trusts regarding the contract award, after they argued correct procurement procedures had not been followed.

A Virgin Care spokesman said: "The procurement process in Devon remains ongoing and we are yet to receive formal feedback beyond the public statement by the CCG.  

"We are proud of what we have achieved over the last six years: significantly improving the services, making them easier to access and reducing waiting times which resulted in the Care Quality Commission rating our services as ‘good'."