Department of Health ends diagnostics deals

Plans for Atos Healthcare to operate a number of diagnostic services for Strategic Health Authorities (SHA) in the South West and North West of England have been halted.

The move was taken when it became clear that Atos Healthcare - part of IT services company Atos Origin - was not in a position to provide the services to the timescale agreed in the contract, the Department of Health said.

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Atos Healthcare was going to provide support for 15 diagnostic systems including ultrasound and MRI scanning for the SHAs.

The SHAs will now turn to their existing contractors to provide the various services. The Department of Health has given assurances that patients will not be affected and that the local NHS organisations are still on course to meet waiting time targets.

Health minister Ben Bradshaw said the NHS is committed to working with the independent sector where it can help increase capacity, address the needs of patients and provide value for money.

Atos Healthcare said in a statement: "The Department of Health yesterday advised Atos Healthcare that it did not intend to proceed with its centrally procured Diagnostic Services contracts for the North West and South West regions. We are in the process of engaging in discussions with the Department of Health to agree the final termination details of the contract."