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MPs critical over Dr Foster deal

20th July 2007

A Parliamentary committee has criticised the Department of Health for agreeing a joint venture with health informatics company Dr Foster without putting the deal out to tender or following Treasury guidelines.

MPs from Parliament’s Public Accounts Committee say the Department ignored procurement guidelines and pursued a 'back room deal' on NHS information. The Department has also been criticised for paying more than it had been advised was the market valuation for its half of the joint venture company that was created. It paid Dr Foster £12m for a 50% share of the joint venture company, Dr Foster Intelligence.

 

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