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NHS England expected to save 40% after new outsourcing contract

NHS England expected to save 40% after new outsourcing contract

NHS England is set to outsource administration services in a new deal with Capita, in order to get 40% cost savings from day one
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NHS England is set to outsource payments for GPs, pharmacies, dentists, cancer screening services and notifications to the public in a new deal with Capita, in order to get 40% cost savings from day one.

Capita is set to sign a £1bn contract to supply administrative services to the NHS within the next few days, Financial Times (FT) has revealed.

Under the terms of the contract, Capita will take on back-office services including payments administration and management of clinical records for NHS primary care providers including GPs, opticians, pharmacists and dentists.

NHS England said the 7 year deal – with an option to extend to 10 years – would create “substantial administrative savings to reinvest in frontline health services, and will form the basis of full consultation with the employees involved,” speaking to FT.

Earlier this year Capita secured a deal to helping clinical commissioning groups to buy billions of pounds of services for hospitals and GPs.

This comes after the NHS is expected to generate £22 billion of efficiency savings through productivity gains of 2% or 3% a year between now and 2020, which thinktank The King’s Fund deemed “highly unlikely” in April. 

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