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Virgin ditches practice takeover
Saturday 10th January 2009Virgin Healthcare has abandoned plans to take over an NHS practice and is watching economic conditions closely.
The business, which is part of Sir Richard Branson’s Virgin Group, was launched earlier this year to open new health centres jointly with NHS GPs and other health professionals.
Virgin Healthcare’s current chief executive, Mark Adams, is to step down but will be retained as a strategic advisor to Virgin Group’s board.
A spokeswoman said the firm was watching the current economic climate “closely” but was still committed to entering the primary healthcare market.
She confirmed Virgin Healthcare (VHC) had discontinued discussions with a practice in Swindon, but said this was just one of many such projects.
A statement from the company said: “Virgin Group remains very committed to entering the healthcare sector. Over the last year Virgin Healthcare has consulted with more than 3,000 GPs, received 300 expressions of interest and the team is actively pursuing advanced discussions with a number of these practices.”
Gordon McCallum, chief executive of Virgin Group UK, said: “Mark and the development team at VHC continue to spend a great deal of time ensuring that when we enter this market we enter with the right proposition for both patients and doctors, at the right scale and importantly at the right time.
“Given the current economic conditions and the challenges within the sector we have decided to measure our pace and to evaluate a broader range of entry options.
“With discussions well under way with a number of practices, we are optimistic that at least one of these options will come to fruition in the short to medium term.”
Mr Adams said: “The Virgin Group believes the NHS will undoubtedly face huge challenges in the coming years. We believe that by working in partnership with the medical profession we can bring innovation and new ways of thinking to help sustain the NHS. I’m delighted to continue to help Virgin shape its healthcare plans for the future.”