Private GP provider allowed to keep APMS contracts despite ‘serious breach’

A large private GP provider will be allowed to continue to run its nine practices in North West London despite having committed ‘a serious breach’ of its APMS contract.

Earlier this year, three London ICBs announced that the successor to Operose Health had actioned an unauthorised ‘change of control’, after the HCRG Care Group – formerly known as Virgin Care – agreed to buy Operose Health last year, which ran nearly 60 GP practices across the UK via ownership of AT Medics. 

According to the London ICBs, the companies requested ‘authorisation’ for a change of control at the end of November, at which point a ‘due diligence exercise’ began to assess the new owner.

However, before this authorisation was granted, the companies went ahead with the ‘change of control’ on 28 December and failed to inform NHS commissioners. 

In May, North West London (NWL) ICB confirmed that AT Medics was ‘in breach’ of a clause in its APMS contract, which the ICB considered ‘serious’. 

However, the ICB has now said that that despite the breach it does not believe imposing a sanction of termination of contracts ‘is proportionate at this time’.

In a letter seen by Pulse, ICB chief executive Rob Hurd said: ‘Whilst we are very unhappy with the actions the HRCG Group, the new owner of AT Medics Ltd, have taken, given the current performance of the practices and the importance of continuity of care, we do not believe imposing a sanction of termination of contracts is proportionate at this time.

‘However, we will continue to closely monitor the performance of the practices to ensure that they continue to deliver high quality care to their patients.’

He said that as contracts come due for potential extension under their terms the ICB ‘will carry out a comprehensive review of their performance’, adding that the breach notice will be taken into account at this point.

‘The breach notice is a matter of public record and will be considered in any future procurements or contract extensions,’ he said.

A spokesperson for Operose Health told Pulse: ‘We’re pleased that the good performance of our practices, and our practice teams’ hard work, has been recognised, and we look forward to continuing to work closely with NWL ICB to serve our communities and improve access to primary care.’

Meanwhile, North East London ICB said that its approach to the six APMS contracts held by AT Medics is that each contract ‘will be considered on a case-by case basis’ as it reaches a review point for renewal or expiry, following a commissioning intentions review process, ‘in the same way as we do for all APMS contracts’. 

Pulse understands that decisions on three of the six contracts in North East London could be made by next month, while decisions on the remaining three contracts will be made within the next two years.

In North Central London, one of the seven practices run by AT medics, St Ann’s Road Surgery, had its contract terminated in June, following lobbying by patients, but the provider will run the surgery for another year, while the ICB sets about reprocurement.