NHS England told to rethink outsourcing policies

NHS England’s outsourcing of primary care support services to Capita has been labelled a ‘shambles’ by the Public Accounts Committee, who urge the health body to reassess its outsourcing approach.

The committee reports that NHS England’s ‘short-sighted rush’ to cut by a third the £90 million it cost to provide these services was ‘heedless’ in understanding the impact it would have on the 39,000 GPs, dentists, opticians and pharmacists affected. The group of MPs also say that neither NHS England nor Capita understood the service that was being outsourced, and both ‘misjudged the scale and nature of the risks’, ignoring many of the basic rules of contracting in the process.

Additionally, the committee warned that, rather than focussing on improving the service, NHS England and Capita are spending ‘too long disputing basic elements of the contract’ and are still in disagreement over future payments.

Meg Hillier, chair of the committee, said: "NHS England made a complete mess of what could have been a responsible measure to save taxpayers’ money. It is clearly unacceptable that poor procurement should put patients at risk of harm and undermine the ability of GPs, dentists, opticians and pharmacists to do their jobs. NHS England needs to rethink its approach to outsourcing and invest time in getting its contracts right.

“That means listening to concerns from the frontline and properly considering the impact changes will have on services and public health. But it also means establishing an effective relationship with the supplier. The dismal fall-out here, with NHS England and Capita squabbling over details that should have been agreed in 2015, tells its own sorry tale. As we have seen time and again, take away the pillars of best practice and there is every chance a contract will collapse—at the expense of taxpayers and service users. Central government must show leadership and ensure government departments and agencies do the job properly."