A new report by the BBC has showed that a NHS outsourcing contract in Cambridgeshire wasted millions of pounds of taxpayer’s money - £726m to be more precise.

UnitingCare, the outsourced service provider, was meant to offer care for older and mentally ill people in the area, but claimed the contract was not financially viable.

The National Audit Office's (NAO) investigated the contract and found several mistakes. For instance, the consortium had not taken account of VAT costs and underestimated both the changeover and running costs of delivering the service, which led UnitingCare to ask for £34m in extra funding one month after the contract was signed triggering fresh negotiations. They pulled out of the deal in December.

For weekly news updates, subscribe to our email newsletter.

Related News: Coperforma underperforms delivering transport services for NHS patients