CONCERNS have been raised about 'potential conflicts of interest' that could arise after 30 GP practices in East Lancashire bought shares in a newly-formed private healthcare company.

The firm, called the Lancashire EU of GPs Ltd, is expected to bid for primary care contracts from East Lancashire Clinical Commissioning Group (CCG), which Hyndburn MP Graham Jones fears could result in a conflict of interest.

The company is made up of 30 practices in East Lancashire, and these practices are also members of the CCG, which decides how NHS cash is spent.

It comes as NHS England prepares to give CCGs more responsibilities for primary care commissioning. CCGs were established by the government's controversial health reforms to give GPs more influence over how NHS money is spent.

Labour MP Mr Jones said: “These GPs have now set themselves up as a business and they will effectively be bidding for contracts and also determining who will receive them. This demonstrates how the legislation is a disaster and is unravelling by the day."

Meanwhile, health campaigner Russ McLean said the new company could pose a threat to East Lancashire Medical Services (ELMS), a social enterprise which has provided urgent primary care services in the area for 25 years.

Mr McLean, the official patient representative for ELMS, said: "Of course I'm concerned, because ELMS is non-profit and this new company could be competing with them and taking money out the system."

Dr Roy Wallworth, an Accrington GP and member of the Lancashire EU of GPs, said on behalf of the company's shadow board: "We take on board the concerns expressed about transparency and conflict of interest and it is a challenge facing many GPs up and down the country since the change in structure of the NHS.

"We have set ourselves the early task of ensuring best governance and have sought expert advice and support to ensure that our governance processes are appropriate and that our board structure will reflect best governance practice.

"We can understand Mr Jones's comments regarding the present structure of the NHS, being a member of the opposition. Nevertheless we are having to adapt to the circumstances we are presented with now."

He said the company will enable practices to jointly express their needs to commissioners, while the CCG could look to commission contracts that cover a large patient population without having to deal with multiple small contracts.

He added: "The organisation’s primary focus is to protect and enhance general practice and community- based services. If the company generates a surplus it would be for member practices to decide how it is used... It is likely that any surplus would maintain the status quo in the short term, and then look to evolve the provision of new services for patients in their local communities."

He would not release a list of GPs that have bought shares in the firm, saying it was not complete. East Lancashire CCG did not respond when asked about potential conflicts of interest, and whether any governing board members had bought shares in the company.