Essential reading for the healthcare business
 
 
Remember me:
Skip Navigation LinksHealthInvestor article
Serco to make £17.6m losses on NHS contracts

Serco has revealed to investors that it will lose almost £18 million on three of its NHS contracts.
The outsourcing firm has made provisions for losses in its Braintree and Cornwall contracts, which were cancelled early.
It has also made provisions for losses in its third contract for services in Suffolk. The company claims it will take longer to deliver the operational efficiencies it hoped for, despite saying in May 2013 that it expected to make a profit on the three-year, £140 million contract for community services.
A company notice to investors published by the London Stock Exchange in March 2014 said: “Provisions for estimated losses in future years on the Suffolk and Cornwall contracts, together with provisions against the underlying assets of the Braintree contract, led to a non-cash exceptional charge of £17.6 million in the year.”
Serco’s GP out-of-hours services contract in Cornwall was attacked last July by the Commons public accounts committee as “substandard”. The company stood accused of manipulating performance data, and having unsafe staff levels.
The contract ended three months early in December 2013, and Serco said it would withdraw entirely from out-of-hours provision.
It also cancelled the contract to manage Braintree Community Hospital early because it didn’t receive the number of patient referrals it predicted. Control passed back over to Mid Essex Hospital Services NHS Trust in March 2014.
Valerie Michie, managing director of Serco’s healthcare business (pictured), said: “Where we have made mistakes we have learned from them, we will continue to learn from them, and we will deliver against our promises. We had to take the difficult decision to end these two contracts early, but this does not undermine our commitment to the healthcare market, which is undiminished.”


Related articles:

Posted on: 10/04/2014

Latest news stories

17/01/2019
Core Assets Group and Partnerships in Children’s Services are joining forces to create a UK specialist fostering network.
17/01/2019
Waterland Private Equity has acquired Sandcastle Care, a residential childcare provider offering long-term therapeutic care across 18 sites in the Northwest of England.
17/01/2019
Healthcare facilities investor Octopus Healthcare, part of the Octopus Group, has raised a further £133.5 million for its Octopus Healthcare Fund.
16/01/2019
Private equity firm Apposite Capital, has announced that its portfolio company Swanton Care and Community has acquired Courtyard Care.
15/01/2019
Manual, an online platform designed to improve men’s health, has achieved £5 million in venture capital seed funding .


Civica


HealthInvestor blog
The government urgently needs to bring clarity to the future of social care provision

Click here to view the HealthInvestor blog


There has been a policy-driven move towards returning responsibility for healthcare to the individual; while greater independence, choice and control over their care sounds like a positive move, for care providers, this can come with inherent risk. Clare Connell and Ryan Perrott ask, ‘Is the concept of individual choice being pushed too far?’
A recent Freedom of Information request has put local authority care home spending in question. Is it time to call public sector provision to account? HealthInvestor UK investigates
In an innovative move designed to speed up access to treatment, health insurer Bupa is joining forces with independent hospital provider HCA Healthcare UK to launch a network of specialist centres for the diagnosis and treatment of breast cancer
A CMA investigation into the CareTech-Cambian tie-up is expected to delay the deal until at least the new year. The intervention – which is one of many in the sector – also raises further questions over the potential for consolidation in sensitive areas of social care. Jeremy Bowden investigates

Click here to search all feature articles



Specialist care

Andrew Cannon, chief executive of Voyage Care, believes in understanding his workforce. The boss of the UK specialist care provider, which supports more than 3,500 people with learning disabilities, autism, brain injuries and other complex needs, says: "it's about love". HealthInvestor UK gets the lowdown
Read more


Christie + Co

my images



Recruitment and retention

When people are one of your greatest assets, it's essential that you are recruiting and retaining the right ones. Neil Eastwood, author of Saving Social Care, advisor to the Department of Health & Social Care's national recruitment campaign, and founder of Sticky People, shares his sector insight
Read more