Health chiefs have decided to extend Virgin Care’s £54million-a-year contract for another three years.

Ending a private firm’s £54million-a-year health services contract for ideological reasons is not in residents’ best interests during a global pandemic.

That was the view of Bath and North East Somerset Council chiefs as they voted to keep Virgin Care on for another three years and avoid a bill of nearly £1million to seek a replacement that would be hard to find.

Councillor Alison Born told her cabinet colleagues on November 10th: “This is a particularly challenging time for health and social care and services must focus on reform and recovery from the pandemic.”

Councillor Rob Appleyard told a scrutiny panel meeting that awarding the contract was “not universally accepted” and there was “continual distrust”.

The company is said to be keen to secure the extension – which would see it secure £558m from the public purse over the full 10 years – and it could challenge the decision if the Council and CCG refused, a report to cabinet said.

Scrutiny panel chairperson Vic Pritchard said: “It would be irresponsible for us to not extend this contract this time because the amount of bureaucracy to engage another partner would be tremendous. It would be an unnecessary cost.”

Going out to tender would cost some £965,000.

Speaking at the cabinet meeting, Councillor Dine Romero said: “You might have an ideological aversion to a private business being part of health and care provision but locally I would like to stress how Virgin Care have really stepped up to the plate during the pandemic.

“Now is not the time to make any extreme changes merely on a point of principle. Now is the moment to focus on supporting our communities and those who work in those communities to deliver the best at this very challenging time for our residents.”

Chief operating officer Corinne Edwards told her colleagues Virgin Care had supported patients through the pandemic and was owed gratitude and stability.

She said the firm recognised that improvements were needed and was committed to delivering on those expectations.