Health bosses are taking legal advice after controversial plans to award a multimillion-pound NHS contract to a private company fell through earlier this week.

Bupa CSH pulled out of negotiations for a £235 million contract to manage musculoskeletal (MSK) services in West Sussex.

MPs and campaign groups protested against the decision by Coastal West Sussex Clinical Commissioning Group (CCG) to name Bupa CSH as its preferred bidder as they said it would put services at Worthing Hospital and St Richard’s Hospital, Chichester, at risk.

An independent assessment into the impact of the plan showed that Western Sussex Hospitals NHS Trust, which runs Worthing and St Richard’s hospitals, could lose more than £13.4 million over five years and it would also have problems recruiting and keeping staff.

The CCG yesterday said it remained committed improving care for MSK patients and it would continue to listen to people’s concerns.

A series of focus groups are planned for the future.

East Worthing and Shoreham MP Tim Loughton said Bupa CSH’s decision became inevitable following the assessment.

He said the check should have been carried out at the start of the process instead of after the contracts had provisionally been awarded.

Mr Loughton said he hoped Western Sussex Hospitals NHS Trust would be able to pick up the contract and take on board moves to make treatment more seamless.

He said: “The most important consideration must be to provide the very best quality of care to all local patients.”

“On top of this it must be ensured that the service is sustainable and that it helps to promote the NHS as a whole.”