Controversial plans to award a multimillion-pound NHS contract to a private company have fallen through after the company today announced it was pulling out.

Coastal West Sussex Clinical Commissioning Group (CCG) caused outrage when it said Bupa CSH was its preferred bidder for the £235 million contract to manage musculoskeletal (MSK) services in West Sussex.

MPs and campaign groups were furious at the proposals, saying the change could put vital hospital services at risk.

An independent assessment into the impact of the change showed Western Sussex Hospitals NHS Trust could lose more than £13.4 million over five years and also cause problems recruiting and keeping staff.

The report found actions needed to be taken to reduce the impact and negotiations have been taking place between the CCG, hospital trust and Bupa CSH to try to find a solution before a contract could be signed.

However Bupa CSH today announced it was withdrawing from the process because of the financial impact it would have on the trust.

A spokesman for Bupa CSH said: “Our priority was to provide high quality and better coordinated care for local patients, and we have worked hard with the CCG to try and find a solution.
 
“However, the recent impact assessment means we cannot deliver the model we proposed without either compromising on the quality of care or destabilising other services.
 
“This is disappointing, but we fully support the CCG’s vision to improve MSK care in Coastal West Sussex. We acknowledge that transforming local health systems in these challenging times is extremely difficult for commissioners who want to introduce new care models.
 

“We remain committed to working in partnership with the NHS and the public sector to deliver high quality health and care services.”

CCG clinical officer Katie Armstrong said: “We are disappointed, but understand and accept, the Bupa CSH position. 

"This procurement has always had one key driver, improving the care for patients with musculoskeletal problems in Coastal West Sussex.

“Bupa CSH’s bid was very strong, they echo our patient values and would have been a good partner to work with in Coastal West Sussex.

“The CCG remains committed to improving outcomes for our MSK patients, we need time to discuss the options with our board but expect to be able to outline our next steps shortly.”