Essential reading for the healthcare business
 
 
Remember me:
Skip Navigation LinksHealthInvestor article
Capita to cut nearly 1,000 NHS jobs following outsourcing contract win

Outsourcing firm Capita is planning to cut nearly 1,000 jobs once it takes on the £400 million primary care support services contract it won from the NHS.

These plans were revealed as part of NHS England’s discussions with unions ahead of the transfer of personnel to Capita in September.

Almost 80% of the employees in the primary care support services division will lose their jobs and 28 of 30 offices will be shut.

Under the terms of the contract Capita take on back-office services such as payments administration and management of clinical records for NHS primary care providers including GPs, opticians, pharmacists and dentists.

The £400 million contract was tendered through a framework that allowed for deals worth up to £1 billion. The difference in value is because the initial contract only covers NHS England but Capita could stand to earn up to £1 billion if NHS Wales or NHS Scotland agree to join the deal.  

The contract will last for seven years with an option to extend for a further three.

NHS England said the deal would create “substantial administrative savings to reinvest in frontline health services, and will form the basis of full consultation with the employees involved”.

Nick Bradley, national officer for Unison, told the Financial Times the job cuts were devastating and put three million patient records at risk. This would be because Capita would be centralising “functions like payments to every GP, pharmacy, dentist and optician in England; responsibility for cancer screening services and all notifications to the public”, he said.

Dr Clive Peedell, leader of the National Health Action Party, also told the Financial Times: “The pursuit of private profit inevitably means staff cuts increasing the welfare bill and reducing spending power in local economies.”

Capita it would not comment until the contract had been finalised.

The contract is the latest in a series of NHS outsourcing deals as part of a drive to save costs.

In May, Capita also won a 10-year, back-office support contract with Central London Community Healthcare NHS Trust worth £80 million.


Related articles:

Posted on: 03/08/2015

Latest news stories

20/07/2018
Alchemy Dental Practice’s two dental practices in Stoke-on-Trent and Crewe have completed a management buyout.
20/07/2018
New health secretary Matt Hancock has emphasized that technology will be one of three top priorities under his leadership.
17/07/2018
Sovereign Capital Partners has exited Xendo, the pharmaceutical, medical devices and healthcare project management company it acquired in a management buyout in 2016.
16/07/2018
Barchester Healthcare, one of UK’s biggest care home groups, is being put up for sale in a deal valued at more than £2.5 billion, according to the Press Association.
16/07/2018
Hospital group Ramsay Health Care UK has launched a programme to encourage staff to challenge unsafe behaviour.


Civica


HealthInvestor blog
The health and social care sector needs to embrace gender diversity after disappointing pay gap results

Click here to view the HealthInvestor blog


Alcohol abuse in Scotland has cost the country dearly. Will imposing minimum pricing on alcohol have the desired affect on health and social care though? Clare Connell and Freddie Evans of Connell Consulting investigate
This year’s gender pay reporting revealed there is still an issue with equality in health and care. Sarah Williams digs into the numbers, and asks what companies can and should be doing about it
Private equity house August Equity tells Ploy Radford how its strategy of focusing on the smaller end of the mid-market is the best recipe for success
Outcomes First Group is developing pathways of care that will cover a person with special needs for life. CEO Graham Baker tells Ploy Radford how the company is achieving that in a tough funding and recruitment environment
The term ‘future-proof’ may be bandied about in health and care, but what do facilities designed to stand the test of time really look like? Sarah Williams takes a look across the sector

Click here to search all feature articles



architecture

The term 'future-proof' may be bandied about in health and care, but what do facilities designed to stand the test of time really look like? Sarah Williams takes a look across the sector
Read more


Christie + Co

my images



gender equality

This year's gender pay reporting revealed there is still an issue with equality in health and care. Sarah Williams digs into the numbers, and asks what companies can and should be doing about it
Read more














Search news
and features



Go




Bevan Brittan