'Major' £1bn NHS megadeal handed to Capita

IT giant to provide admin support to health bodies across the country

The NHS has chosen Capita to establish a single-provider framework which could last up to 10 years and be worth up to £1bn.

Capita will provide the NHS with admin support functions across the UK under the framework, which includes an initial contract for it to manage and deliver IT services in England.

The latter contract will last for four years and is valued at about £400m, while the whole framework will last for up to 10 years, during which it could rack up a £1bn bill.

Capita claims it will achieve "significant" savings for the health service through the agreement.

"Capita will introduce a common set of services, processes and standards to improve the quality, reliability and sustainability of administration support services," the firm said.

"Accessible services and better ways of working will contribute significant savings in keeping with NHS England's commitment to reduce administration costs and protect investment in frontline care."

TechMarketView research director John O'Brien said the win is a landmark for Capita.

"This is a major win by any reckoning and builds on Capita's recent run in the NHS," he said on the analyst's blog.

"This primary care deal should place Capita at the heart of the reforms taking place across the NHS, with GPs being given more autonomy over spending. While a major focus of this is likely to be cost reduction, any programme that can improve the quality of administrative services, ultimately benefitting GP patients, has to be a good thing. Let's hope it delivers."