Virgin Care is to continue providing adult community services in one corner of Surrey after winning a contract extension.

Under the deal – which has been agreed in the last few weeks – Virgin Care will continue to provide services to Surrey Heath Clinical Commissioning Group’s population, plus those living in and around Farnham for another year.

Virgin Care provided these services to the whole of western Surrey until last April. At that point CSH Surrey took on services in the North West Surrey CCG area. This coming April services in Guildford and Waverley will pass from Virgin Care to a consortium of the Royal Surrey County Hospital Foundation Trust and local GPs.

This will leave Virgin Care covering just the 95,000 Surrey Heath population and the area around Farnham, a town of 40,000 people.

Governing body papers for North East Hampshire and Farnham CCG for January show local leaders had been concerned that the much reduced contract would not be attractive for Virgin Care because of the loss of economies of scale and that the company might serve notice on the CCG.

But in a joint statement Surrey Heath and North East Hampshire and Farnham CCGs said a £10.8m contract had been agreed with Virgin Care to continue for another year, based on the previous year’s spend but with a small uplift for inflation.

“Both localities are fully developing plans for community services in light of the North East Hampshire and Farnham vanguard and Surrey Heath new model of care, and continue to do so within the Frimley integrated care system. Our intention is to ensure the market is engaged when appropriate as part of this process,” they added.

Ten of the Virgin Care-run inpatient beds at Farnham Community Hospital are used by patients from the Guildford and Waverley CCG area, including some requiring rehabilitation after stroke. While the CCG has confirmed that the number of community beds it procures overall will not change, it said where these will be located has still to be decided and changes to local stroke pathways could potentially affect this.