HC Deb 11 November 1996 vol 285 cc87-9W
Mr. Alan Howath

To ask the Secretary of State for Social Security what is the timetable for the negotiations and issue of contracts for the contractorisation of the Benefits Agency medical services. [2774]

Mr. Burt

The tendering process began in 1996 with the publication of an advertisement. Responses were evaluated and five companies selected to enter into negotiations with the Department for the provision of the services. A statement of service requirements—document containing details of the scope of work to be contracted out-will be issued to the shortlisted companies on 20 November. The companies will have time to clarify their understanding of the business and they will then be requested to put forward their proposals.

It is anticipated that contracts will be let by April 1997.

Mr. Howarth

To ask the Secretary of State for Social Security how he plans to safeguard confidential information in contracts for the delivery and administration of social security benefits and medical assessments. [2778]

Mr. Burt

I refer the hon. Member to the reply I gave him on 24 July,Official Report, column 586.

Mr. Howarth

To ask the Secretary of State for Social Security what discussions have taken place with NHS hospital trusts concerning the contractorisation of the Benefits Agency medical services; what agreements have been reached concerning the fees which the trusts may charge private sector companies for the release of claimants' medical records; and how the additional cost will be financed. [2776]

Mr. Burt

We are currently discussing this issue with the NHS executive. Whatever the outcome, it is imperative that provision of these services will not lead to an increase in the expenditure of public funds.

Mr. Howarth

To ask the Secretary of State for Social Security how many contracts he intends to issue for the contractorisation of the Benefits Agency medical services; and which companies have been shortlisted for consideration. [2775]

Mr. Burt

The undertaking has been divided into three contract packages based on geographical areas; however the contracts may be awarded to fewer than three contractors.

Five companies have been chosen to enter into negotiations with the Department for the provision of a medical service. Those companies are Andersens, BMI, Capita, EDS Ltd. and Sema.

Mr. Howarth

To ask the Secretary of State for Social Security what plans he has made for the financing of the costs of claimants' travel expenses to medical centres following the contractorisation of the Benefits Agency medical services. [2779]

Mr. Burt

No changes to the policy on reimbursement of travel expenses are planned. The responsibility for paying the expenses will however transfer to the successful contractors(s) following contract award.

Mr. Howarth

To ask the Secretary of State for Social Security which organisations he has consulted on the contractorisation of the Benefits Agency medical services. [2773]

Mr. Burt

As part of the process to determine the feasibility of contracting out Benefits Agency medical services, market research was undertaken with a wide range of organisations which included medical, IT and managed services companies.

Mr. Howarth

To ask the Secretary of State for Social Security what performance targets he plans to include in contracts with private sector companies taking over the functions of the Benefits Agency medical services. [2777]

Mr. Burt

I refer the hon. Member to the reply I gave him on 16 July 1996,Official Report, column 509. Targets and performance indicators will be matters for discussion and negotiation prior to contract(s) being awarded.