Taxpayer left with £270,000 bill as GPs went bust

NHS officials have ordered a raft of changes after a highly-critical report uncovered a series of failings in managing a contract with the Brampton Medical Practice in Brampton, near Wath-upon-Dearne, Rotherham, which was wound up last June.

The financial failure of the practice barely two years after it opened was blamed on the economic downturn which had led to the scrapping of plans for 1,400 new homes nearby.

But a report by internal auditors found the practice, which had 1,100 patients on its list when it closed, had been overpaid for its work from the time it opened in April 2009, wrongly receiving an extra £122,000 in funding which NHS Rotherham was demanding back at the time of the collapse.

A further £150,000 was owed to the Yorkshire and Humber Deanery, which is in charge of doctors’ training, for work to fund improvements to allow the practice to train GPs, taking the total bill to over £270,000.

The executive summary said: “The contract management significantly fell short of what would be expected to ensure that the contract was managed effectively.

“There was no continuity of operational management, a lack of appropriate expertise in the financial management of the contract and no senior manager was assigned overall responsibility/accountability.”

Despite four operational meetings between July 2009 and March 2010 when it was recognised patient lists were “well below target”, no action was taken.

Four different people were responsible for the contract but no- one took over when the last went on long-term sick leave. The report also found there was confusion over the amounts payable.

In April last year, it was discovered overpayments were being made. NHS officials took “swift action” to recover the money but it was not possible to reach an agreement and the firm ceased trading on May 27.

Investigations established the practice had been overpaid £3,000 a month in 2009-10 and £7,000 a month in 2010-11.

Eleven recommendations were made for improvements, including better document keeping and contract management.

A directors’ report winding up Wentworth North Primary Care Ltd, which was set up by seven local GPs, blamed the collapse on the failure of a merger with a neighbouring practice, the economic downturn and the decision by NHS Rotherham to recalculate payments, which meant the business was no longer viable.

“It was therefore recommended to the directors that to minimise losses to any creditors the business should cease trading and be put into immediate liquidation.”

A final report is expected by liquidators in coming weeks.

NHS Rotherham chief operating officer Chris Edwards said the review had been set up to look at lessons for the future and the 11 recommendations had been implemented. He added: “However, we are satisfied that patients are now settled into other local GP practices and continue to receive high-quality primary health care.”

A regional health authority spokesman said money had been made available by the Department of Health to increase GP training places and it had jointly overseen the project in Yorkshire.

“Robust resilience plans were put in place and adhered to throughout the life of the project,” he said. “The project was not seen through to conclusion at the Brampton Medical Practice as this particular practice went into liquidation, an eventuality which could not have been foreseen.”

Catalogue of problems: Page 2.