Get the data: NHS spent £60m on cancelled healthcare contracts

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The Bureau has uncovered that £60m compensation was given to private companies when plans for a second wave of Independent Sector Treatment Centres, ISTCs, were axed.

According to the Department of Health, wave two initially involved 24 schemes, but was scaled back to 10. The Department said that ‘the changing situation in health economies’ meant that extra capacity was no longer needed.

As the table below shows, six companies: Netcare, Care UK, Alliance, Atos Origin, and Clinicenta received a total of £59.8m compensation when the contracts were cancelled.

Code Name Provider Amount * Note
E04 Cumbria & Lancashire CATS Netcare 4.0
E07 Essex Care UK 2.7
E11 London North Clinicenta 13.4 Contract ran but now terminated
E12 London South Clinicenta 4.1
D03 East of England Amicus (JV InHealth Group and Netcare) 3.0
D02 North East of England Alliance Medical / Care UK 3.2
D04/D07 South West, North West Atos 2.5 Contract awarded but terminated on failure of conditions precedent
D05 West Midlands Care UK (Mercury) 27.0 Contract ran but now terminated
* Published in DH Accounts EXCEPT £8m included in E11 for termination only just agreed in Dec 2010 / January 2011

Source: Department of Health