The Capita Group PLC has announced that it has been appointed as preferred supplier by a NHS North Mersey collaboration to deliver HR, payroll and recruitment services for up to 12 NHS trusts in Mersey. The seven year contract worth up to £27 million, with an option to extend for a further three years, will start rolling out by the end of the year.

The NHS North Mersey collaboration comprises 12 NHS trusts, but, under this framework agreement, other trusts from across the Northwest could procure their HR, payroll and recruitment functions from Capita. The contract is expected to involve the TUPE transfer of up to 150 employees to Capita and the set up of new shared service centre based in Liverpool, thereby keeping jobs in Merseyside.

Commenting on the announcement, Alan Bailey, managing director for Capita’s HR business, said: ”This is the first time NHS trusts have come together in this way to collectively outsource their HR, payroll and recruitment functions. As a result of this landmark agreement, the trusts will gain access to Capita’s broader HR expertise and investment in order to achieve a modern and cost effective service. This will better enable NHS trusts in Mersey to focus on the important task of treating patients and delivering a high quality health service to the local community.”