Spire Healthcare Group Plc (LSE:SPI) said it agreed in principle with NHS England to provide support during the coronavirus (COVID-19) pandemic.
The private healthcare group said the final details are yet to be agreed but the contract will likely operate on the same terms as a previous one between the two organisations, which ran between January and March last year.
Under the deal, Spire Healthcare, along with other private hospital operators, will treat some NHS patients as well as performing urgent cancer work to relieve pressure on the NHS. It will also grant access to all its facilities if there is a further surge in COVID-19 cases.
The company said it will continue to support its own private patients during the period of the contract, which is expected to expire on 31 March 2022.
Under the previous COVID-19 contract between the NHS and the private sector, estimated to cost between £2bn and £5bn, research showed that almost no COVID-19 patients were treated in the private sector and NHS funded activity in the private sector fell much further than in NHS Trusts.
Underutilisation of the purchased capacity was a persistent feature of the contracts, while the 26 private hospital companies benefited significantly from the deal, the Centre for Health and the Public Interest said in its report last year.