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Capita regrets taking on unprofitable primary care support contract



Capita has suggested it regrets taking on the primary care support contract which has been riddled with problems.

It added that the contract, which it assumed in 2015, would not be profitable for the life of the contract, which runs out in 2022.

The admissions, made in front of the Public Accounts Committee (PAC) come as a National Audit Office report said NHS England’s decision to award the contract to Capita had ‘potentially compromised patient safety’.

Capita chief executive Jonathan Lewis told the PAC: ‘If we were to approach a contract of this nature today, we would approach it very differently and – speaking for Capita as the relatively newly appointed CEO – unless we were comfortable that we could deliver against the spec, we understood the risks, we would not bid on it.’

He went on to admit that Capita has made loses of £140m since taking on the contract – an increase on the £125m reported by the NAO.

And he added: ‘We will not make money over the life of this contract.’

But he said this would not mean backing out of the contract.

He said: ‘We made a commitment to deliver this service and reputations depend on that commitment.

‘We see the public sector as a segment of our market that helps us achieve a diversified revenue base, it’s a segment where we have services and solutions, where we can create value for the tax payer.’

Capita has faced a catalogue of failings affecting GPs, many of which were first revealed by Pulse, including issues with moving medical records between practices as well as delayed processing of updates to the National Performers List.