GP surgeries firm to face action over contract breach
‘Change in control’ had not been authorised by health chiefs
Friday, 17th May 2024 — By Tom Foot
HEALTH chiefs are meeting next week to decide how to punish a company running GP surgeries in Camden following a “serious breach” of contract.
The North Central London Integrated Care Board, which decides how Islington’s NHS funding is spent, said they had not authorised “a change in control” at the company in charge of Hanley Primary Care centre and the Mitchison Road Surgery.
It said the US health insurance giant Centene Corporation sold off its UK subsidiary, Operose Health, to the HCRG Care Group, without informing them on December 28.
Operose Health is the parent company of AT Medics, which holds the NHS contracts to run the GP surgeries in Islington.
But NCL said they had not been given the chance to approve the “change in control” and that the deal was signed off before any “due diligence” could be done on the new company and this amounted to a “serious breach of contract”.
“It is seen as a fundamental breach in trust that falls below the standards expected from an organisation contracted to deliver NHS services,” according to a report about the breach due to be discussed at an “extraordinary” board meeting on Tuesday.
An in-depth report ahead of the meeting said three options were available: take no further action; put in place some enhanced monitoring; terminate the contracts.
Terminating the contracts is “likely to have support from key stakeholders and patient representatives based on feedback to date and may protect public trust and confidence in the ICB and its processes and decision making”, the report said.
But the board has been recommended to approve the second option of greater checks, with the report adding: “There is a low risk of legal challenge related to the change of control process under this option.” It added that this month the offices of MPs Jeremy Corbyn and Sir Keir Starmer had been briefed about the situation requests.
A statement from AT Medics and Operose said: “Our main priority has, and will always be, providing our patients with high-quality primary care. The new parent company is an experienced provider in the Health and Care Sector, including GP practices, Walk in Centres and Urgent Care.”