NHS payment to Virgin after it loses out on £82m health contract

 Virgin Care, part of Sir Richard Branson’s empire, appears to have been paid a settlement by the NHS after the healthcare group lost a bid to provide children’s services in Surrey.

The three-year, £82million deal covering health visitors, school nurses and speech and occupational therapy for children was awarded to a consortium formed by in-house NHS providers and a social enterprise.

Virgin Care Services started High Court proceedings against NHS England, Surrey County Council and six clinical commissioning groups in November last year, after its bid failed.

It said there were “serious flaws in the procurement process”.

Virgin and the CCGS said the matter had been resolved, stating that the terms were confidential. But board papers for NHS Surrey Downs, one of the six CCGS involved, state that its “liability” in the case was £328,000.

In a joint statement, Virgin Care and Guildford and Waverley CCG – the lead commissioner – said: “The parties are pleased to confirm that an agreed resolution on the litigation concerning the Surrey children’s procurement has been reached to a satisfactory conclusion for all parties with detailed terms confidential to the parties.”