MPs accuse DH of rule-breaking over joint-venture deal

The Department of Health showed a complete disregard for public money by entering into a joint venture with private company Dr Foster, a committee of MPs has concluded.

The public accounts committee said the department had failed to go through a fair and competitive tendering process. In a report published this week, it accused the DH of favouritism and ignoring Treasury tendering guidance.

The committee also said that after setting up its Health and Social Care Information Centre in April 2005, the department entered into exclusive discussions with Dr Foster to help run it in a 50:50 deal.

The report said: 'Without an open competition, the Information Centre cannot show it paid the best price for its 50% share of the joint venture.'