'Business as usual' for primary care support as Capita reveals £513m loss

Outsourcing firm Capita has sought to reassure GPs that primary care support services will not be affected after it reported a £513.1m annual loss and a plan to raise £701m.

Patient records - PCSE service 'unaffected' by Capita loss (Photo: JH Lancy)
Patient records - PCSE service 'unaffected' by Capita loss (Photo: JH Lancy)

The reported loss and the plan to raise funds through a rights issue come just months after the BMA sought assurances over the future of the Primary Care Support England (PCSE) service run by Capita, when the company's share price fell 40% in January.

Earlier this month, the BMA hit out at 'scandalous' delays to pension payments for retiring GPs in its latest challenge over the standard of PCSE services.

Long-standing GP concerns about the service led by Capita saw the English LMCs conference last November demand that the company be stripped of its PCSE contract, and that the service return to public-sector provision.

Business as usual

Asked whether the loss reported in its full-year results for 2017 or the rights issue would affect PCSE, a Capita spokeswoman told GPonline there would be no impact at all and that it would be 'business as usual' for the service.

Capita's assurances over the service, which controls functions such as the transfer of patient records between GP practices and payments to practices, came as one senior Labour politician said the company's report showed the 'outsourcing game is up'.

A statement from Capita on 23 April said its underlying revenue declined by 4.3%, while underlying profit before tax before 'significant new contracts and restructuring costs' rose by 23%.

The loss before tax of £513.1m was 'impacted by £850.7m of specific non-underlying items, including £551.6m goodwill impairment and a number of other asset impairments and provisions'. Capita's net debt at end December 2017 was £1.117bn.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins


Already registered?

Sign in