Firm handed £4bn NHS contract was overcharging

July 31, 2006

THE company at the centre of the biggest privatisation yet seen in the NHS will not save the health service money, according to an American manufacturer who has just won a settlement from it.

Novation has been under investigation for questionable business practices.

The Times revealed last week that the Texas-based company is expected to take responsibility for spending more than £4 billion a year of NHS money.

Novation and its German partner, DHL, will take charge of purchasing and distributing everything from bandages to hip implants.

The news has astonished critics of Novation in the US who say that the US Justice Department launched an investigation into the company and other group purchasing organisations (GPOs) in 2004 over claims that they had overcharged federal healthcare programmes for goods.

Firm handed £4bn NHS contract was invesitigated for overcharging – Britain – Times Online