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Exel priced out of NHS deal

30th May 1996, Page 12
30th May 1996
Page 12
Page 12, 30th May 1996 — Exel priced out of NHS deal
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Keywords : Exel

• Exel lost a £13.3m contract to run five NHS medical stores in Wales because it raised its price by .C1.2m after winning it.

The contract will revert to the in-house transport department of the Welsh Health Common Services Authority (WHCSA). which manages NHS resources for more than 30 Welsh hospital trusts.

WIICSA chief executive Nigel Kirk says he has no criticisms of the company, "It wasn't a bottom-line exercise," he says of the tendering process. "It was based on net present values and affordability." Exel says it reserved the right to alter its price because it was not given all the information it needed. That meant Exel was forced to revise its estimates when it started detailed talks with WHCSA after winning the contract.

But the decision might not save all five WHCSA depots, which Exel planned to close, or their 150 staff. Kirk expects two could be closed after he asks the 30 health authorities how they want to manage the depots at a meeting early in June.

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