Capita Group plc : Capita announces contract signing with NHS North Mersey collaboration

05/01/2012

Capita to provide transactional HR, recruitment and payroll services worth £22 million

Capita plc announces today that it has signed a contract with 10 NHS trusts in North Merseyside to deliver transactional HR (inclusive of recruitment) and payroll services. The seven year contract, which includes an option to extend for a further three years, begins rolling out this month.

Under this framework agreement other trusts from across the North West, beyond the 10 trusts that have signed up, could procure their transactional HR and payroll functions from Capita. The contract involves the TUPE transfer of 125 employees to Capita this month and the set up of a new shared service centre based in Atlantic Park, Liverpool, to ensure jobs are kept in Merseyside.

Commenting on the contract, Patricia Taylor, managing director for Capita's HR business, said: "Trusts joining the framework can look forward to receiving an improved and more efficient delivery of transactional HR and payroll services. Also, with Capita lightening the administrative load, trusts can concentrate on the vital task of treating patients and providing quality healthcare to the local community."

Raj Jain, Chief Executive of Liverpool Heart and Chest Hospital, who has been leading the project on behalf of the other trusts, commented: "Trusts currently have different arrangements in place for delivering transactional HR and payroll, so the savings for each organisation will vary, but we know that by using our collective buying power we can generate real benefits. We've identified potential savings of around 17 per cent across the local NHS as a whole; that means hundreds of thousands of pounds which could be focussed on patient care rather than administrative processes."

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Notes to editors:

Capita announced being made preferred supplier to NHS North Mersey collaboration in May 2011. The NHS trusts who have signed to join the framework agreement with Capita are:

• Aintree University Hospitals
• Alder Hey Children's Hospital 
• Liverpool Community Health 
• Liverpool Heart and Chest Hospital 
• Liverpool Primary Care Trust
• Liverpool Women's Hospital 
• Mersey Care 
• Royal Liverpool and Broadgreen University Hospitals 
• NHS Sefton
• The Walton Centre

Clatterbridge Centre for Oncology is also involved in the project but as their payroll service is currently in contract with another supplier they intend to transfer to the shared service later in 2012, pending board approval.

The value of the contract will increase as and when other trusts join the framework.

Capita plc is the UK's leading provider of BPO and integrated professional support service solutions.  With around 45,000 people at more than 350 sites, including 64 business centres across the UK, Ireland, the Channel Islands and India, the Group uses its expertise, infrastructure and scale benefits to transform its clients' services, driving down costs and adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2010 of £2,744 million.