Virgin launches GP service

pharmafile | January 15, 2008 | News story | |  NHS, private sector 

Richard Branson’s Virgin group has launched a new business offshoot which will compete to offer GP services around England.

Virgin is not the first private company to enter the field, but the arrival of one of the world’s most recognisable consumer brands is a stark illustration of how the once closed shop of primary care is being shaken up.

Competition to provide GP services is being strongly encouraged in 2008, especially in ‘under doctored’ areas, with PCTs and central government striking deals with private providers. This is in contrast to the private sector providing acute services such as surgery, which Health Secretary Alan Johnston recently announced will be cut back.

The first Virgin Healthcare centre will open later this year, and the company will compete with other private providers and with traditional GPs to provide NHS services around the country.

The first centre will open at an as-yet undisclosed location in the M4 corridor this summer, and the company aims to follow this up with a further five centres across England by 2009.

Virgin Healthcare is not starting completely from scratch, and has drafted in experienced executives to lead its entry into the market. Virgin Healthcare’s chief executive Mark Adams was poached from his role as head of Netcare, which holds NHS contracts for treatment and diagnostic centres around the UK.

The company is expected to lure GPs away from existing practices and into their new purpose-built centres, which will then offer additional private services such as physiotherapy which will help generate revenue for the enterprise.

Commenting on the launch of the new venture Mark Adams said: “As with all Virgin businesses, Virgin Healthcare is getting involved in an area where we feel we can make a real difference.

“Virgin’s expertise in customer service, technological know how, communication skills and resources can combine with the expertise of primary healthcare clinicians to make that difference in the healthcare sector.”

Mr Adams said the company would work with healthcare professionals under existing NHS contracts, who will retain their independent contractor status while it will seek to offer more patient services in existing practices.

Virgin Healthcare does not intend to use the Alternative Provider Medical Services (APMS), the contract specifically designed with private companies in mind.

Virgin Healthcare is to promote itself by visiting 26 towns across England in February and March to present their plans to GPs and practice.

In November the Health Secretary announced that 38 PCTs have been identified as having the poorest GP provision and will take priority in plans to increase capacity, with the government aiming to see 100 new GP practices open over the next three years.