Fears for NHS LIFT as Kent deal scrapped

The £120m programme to upgrade local healthcare facilities under the Sustainable Communities in Kent NHS LIFT scheme has been scrapped, triggering fears for its future and its delivery vehicle, Partnerships for Health (PfH).

NHS LIFT contractors sought reassurance from the Department of Health (DH) this week about its plans for the NHS LIFT programme, in the light of the Kent scheme being abandoned. They also raised concerns about the sale last week of Partnerships UK's 50% stake in PfH, which makes the Department of Health its sole owner.

One leading contractor told CJ: "The word is that PfH will disappear into the Department, the NHS LIFT initiative will be wound down and the community hospitals programme, which was to be delivered by PfH, will be taken over by the DH's private finance unit."

Partnerships for Health moved quickly to allay industry fears. George Farley, joint interim chief executive of PfH, told CJ that all the other seven NHS LIFT schemes in the fourth wave of the LIFT programme were forging ahead.

He added that Partnerships for Health would continue to support Primary Care Trusts (PCTs) and their LIFT partners and "will be looking to support the Community Hospital programme."

Health minister Lord Warner underlined this view. Referring to the sale of PUK's holding in PfH, he said: "The agreement will help us take this revolution in NHS facilities even further, as we look to deliver on our white paper commitment to develop a new generation of modern NHS community hospitals."

The shortlisted bidders for the Kent scheme were Investors in Health (Mill Group) GB Primary Care (British Health Enterprise) and Guildhouse. All three declined to comment.

Robert Sheridan, project director for the Sustainable Communities in Kent NHS LIFT scheme, told CJ: "A review of the specific needs of each PCT was undertaken while the fourth wave was on temporary hold, which concluded that the NHS LIFT scheme should not go ahead." He said he had debriefed all three bidders and none had requested any reimbursement of costs.

The three PCTs will shortly be reduced to two, with Dartford, Gravesham and Swanley PCT and Maidstone PCT merging into the West Kent PCT, and Ashford PCT joining the East Kent Coastal and Teaching PCT.

• Community Solutions for Primary Care (Morgan Sindall/Apollo Medical Partners) has clinched the £125m Bury, Thameside and Glossop NHS LIFT scheme, beating contenders GB Consortium and Accent.

This is the second wave four NHS LIFT scheme to reach preferred bidder status, following on the heels of the £100m South East Essex scheme, which has GB Consortium as its preferred partner. Following the recent withdrawal of the £120m Sustainable Communities in Kent plan there are now seven schemes left in the fourth wave.

The next two schemes earmarked to go to preferred bidder stage within the next four months are the £138m Bolton, Rochdale, Heywood and Middleton scheme and the £80m South East Midlands scheme.

[Contract Journal, 20 September 2006, p 1]