Capita shares drop after NHS cancer screenings error

Outsourcing business Capita's share price dropped as much as nine per cent this morning, after it was hit with criticism from the NHS yesterday over its handling of a system error.

It was revealed that more than 40,000 women did not receive letters of invitation or reminders regarding NHS cervical cancer screenings from Capita between January and June this year. 

Most received one or the other, but not both. Capita said there was also an issue to sending out letters on the results of such screenings, with approximately 4,508 letters having been delayed.

The failure was the result of a system error, where the correct processes for uploading and checking files were not followed. The company said it is taking disciplinary action against those involved.

The British Medical Association (BMA) expressed "extreme concern" about the situation in a letter to NHS England yesterday, and urged the organisation to strip Capita of its contract to handle GP back office services.

"This is an incredibly serious situation, and it is frankly appalling that patients may now be at risk because of this gross error on the part of Capita," said BMA GP committee chair Richard Vautrey.

"It is ultimately NHS England that bears overall responsibility and it must now take this service back in-house. As the body which commissioned Capita to take on this work, despite clear warning signs that it was not up to the job, NHS England must shoulder the blame for this dreadful situation; you cannot outsource responsibility."

NHS England has said it has placed its deal with Capita to handle letters for cervical cancer screenings under review.

Capita's shares hit their lowest level in six months in early trading this morning, reaching a low of 113.7p. 

The news followed a string of share price drops for rival outsource firm Interserve this week, which has crashed 23 per cent after it was reported to be facing financial struggles. This, in addition to the collapse of outsourcer Carillion earlier this year, has put the fate of contractor firms in the spotlight.