HSJ Exclusive: CCG resists Virgin Care demands for more money

Virgin Care has demanded more money for a controversial prime provider contract it signed with commissioners in Staffordshire last year, HSJ has learned.

East Staffordshire Clinical Commissioning Group has said it is “resisting” requests from the company for more money for the £270m prime provider contract.

Virgin is responsible for commissioning services for people with long term conditions

Both the CCG and Virgin Care have refused to confirm the amount being asked for, however, sources have told HSJ the private provider has asked for nearly £5m extra.

The news follows reports earlier this year that the CCG was in a dispute with the Virgin over “contractual claims” the company had made in relation to the “Improving Lives” contract

In 2015, Virgin Care was awarded a fixed price, seven year prime provider contract worth £270m, which went live in May 2016.

As part of the contract, Virgin took on the financial risk for community services in East Staffordshire and is responsible for commissioning services for frail elderly patients, people with long term conditions and intermediate care.

Full story in The HSJ, 23 October 2017