NHS trust withdraws award of £65m contract after threat of procurement challenge

Mersey and West Lancashire Teaching Hospitals NHS Trust has withdrawn the award of a contract to provide electronic patient records after a losing bidder initiated legal action.

The £65m contract went to a joint bid by Insight Direct and Altera Digital Health instead of existing supplier System C, which then lodged a claim in the High Court alleging bias.

A statement issued by the trust said: “On 16 August 2024, a claim was issued by an unsuccessful tenderer challenging the award decision notified to bidders on 30 July 2024.

“The trust does not consider that the claim is well-founded. However, rather than face the significant cost, disruption and distraction of litigation, and the resulting impact on the delivery of services to patients, the trust has decided to withdraw the award decision.

“The trust will now seek to make a decision as to how best to proceed with this important system procurement and will provide an update once a decision has been made.”

It would not comment further in view of the legal action.

System C, Altera and Insight Direct were contacted for comment.

Mark Smulian