Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, with reference to the 46th Report of the Public Accounts Committee, Session 2014-15, HC971, what steps he has taken to ensure that the public purse is not exposed to any losses in circumstances in which Circle Holding plc fails to fulfil its contractual obligations in the delivery of musculoskeletal services in Greenwich; and if he will make a statement.

The procurement of local health services by means of competitive tendering is a matter for the local National Health Service.

We are advised by NHS England that NHS Greenwich Clinical Commissioning Group (CCG) has taken all reasonable steps to protect the public purse with regard to the contract for the provision of an integrated Musculoskeletal (MSK) service in Greenwich, which it awarded to Circle Health.

The contract is governed by the General Conditions of the NHS national Standard Contract, which require the service provider and commissioner to indemnify each other in respect of any losses.

With regard to contract expiry or termination, the conditions also provide for the protection of commissioners from excess costs (and their administration) incurred in procuring the services from another party, for a period of six months from termination.

We are also advised by NHS England that as part of the procurement process undertaken by Greenwich CCG, parties bidding to provide an integrated MSK service in Greenwich were required to provide a mobilisation plan within identified timescales, in line with the scope of service.

We understand that the CCG and Circle Health hold weekly mobilisation meetings to track Circle’s progress and to monitor the implementation and transition of the service up to the go-live date and the post go-live transition.