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Capita should ‘consider compensation’ for late processing of payments, minister says

Capita, the controversial contractor responsible for delivering administrative support for GP services, should consider financial compensation for problems, the health and innovation minister has said.

In a House of Commons debate, Nicola Blackwood responded to criticisms from MPs of the government’s decision to give the services contract to Capita last year.

Geoffrey Robinson, MP for Coventry North West, said local GPs had told him that they were “simply unable to do their job without having their patients’ records to hand”.

“The irony is that we have ended up with a terrible service that is costing more than the previous service ever would, because the company was not properly prepared, did not have a commitment to providing the service, and was unable to do so,” he added, “and because of the competing and irreconcilable claims about short-term gains in the form of profits and illusory savings for the health service.”

Karin Smyth, MP for Bristol South, also argued the decision to contract out the services nationally was “driven by a desire to make massive wholesale savings” that ignored local needs.

A BMA survey, published earlier this week, found that 81% of GPs had not received urgent patient records from Capita more than three weeks after requesting them, while 31% had received incorrect records and nearly a quarter had not received medical supplies on the expected date.

Opticians’ professional bodies have also claimed that their members have suffered a significant financial impact because of the company’s failure to properly process service claims.

But Blackwood defended Capita’s record and said she was holding regular meetings with NHS England and the company as they seek to resolve the problems.

Regarding the issue of financial detriment due to late processing of payments, she commented: “NHS England is working with Capita to explore what can be done to support affected stakeholders, and I have made it clear to Capita that I expect it to consider compensation as an option.”

The minister defended the decision to award the contract to Capita, saying it had been decided through a “competitive tendering process” and bids had been assessed for quality as well as cost.

But Blackwood admitted: “However, it is evident that Capita was inadequately prepared for delivering this complex transition.”

She also rejected calls for a return to the old system of primary care support, saying it “relied on localised services that did not connect with one another, with much duplication across processes”.

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