A London clinical commissioning group has decided to retender its integrated urgent care and out of hours services contract after it was threatened with a legal challenge from an unsuccessful bidder.

Greenwich CCG said it will “rewind” the tender process after unsuccessful bidder Grabadoc Healthcare Society claimed the group failed to keep to a requirement that providers would have to deliver the three year contract for no more than £13.8m.

Grabadoc, which launched a legal challenge against the CCG earlier this month, has said it will bid in the new tender process. It already provides the current out of hours service.

Queen Elizabeth Hospital, Woolwich, South London Healthcare NHS Trust

The contract involves managing urgent care and out of hours services at Queen Elizabeth Hospital

The contract involves managing urgent care and out of hours services at Queen Elizabeth Hospital in Woolwich, as well as satellite clinics in Eltham and Thamesmead.

Commissioners were worried that resolving the legal challenge could take months, and could undermine providing safe and effective urgent care services.

Alongside the judicial review, Grabadoc had also begun separate proceedings against Greenwich CCG under Public Contracts Regulations 2006.

The service was due to start in April but this will now be delayed while the new tender process is underway. Grabadoc has agreed to continue running the service until a new provider is chosen. It will also bid for the new tender.

The CCG chose Greenbrook Healthcare as its preferred bidder for the service last month. However, the legal challenge meant the CCG was unable to sign the contract with the provider.

Initially, the CCG intended to try and get the suspension on the signing of the contract lifted. However, it has now reconsidered.

Sue Howe, chief operating officer at Grabadoc, said: “Grabadoc is very pleased that Greenwich CCG has decided to retender its urgent care service contract. We will be bidding for the new tender and have agreed to extend our current contract for [out of hours] services in the meantime.”

A spokeswoman for Greenwich CCG said: “NHS Greenwich CCG has informed Grabadoc that they intend to rewind the procurement of the new model for urgent care and out of hours services.

“Both Grabadoc Healthcare Society and Greenwich CCG want to focus on providing high quality, safe urgent care and out of hours’ services for the people of Greenwich and coming to an agreement to stop the legal case and rewind the procurement allows this to happen.

“Grabadoc’s legal claims against NHS Greenwich CCG have therefore been resolved and have been, or shortly will be, brought to an end.”