A CONTRACT worth half a million pounds to provide healthcare checks has been awarded by Sandwell Council to Randox, a private healthcare company which has received allegations of cronyism over coronavirus testing supplies.

The contract – at £510,028 over two years – will provide Sandwell residents aged 40 to 74 the option to take a free test to detect any early signs of diabetes, heart and kidney disease and hypertension.

The contract, Sandwell Council told the Local Democracy Reporting Service (LDRS) will be dependent on payment by results (PBR) – accountable for up to 67 per cent of payments. The council retains an option to extend the contract for a further year.

Letters branded with logos from Randox, Healthy Sandwell, and the NHS, will be sent to residents in Sandwell, according to the council, inviting them to book a 20-minute test via a link to Randox’s website.

The test will be completed via an online self-assessment under a partnership with Sandwell Council’s Healthy Sandwell team, the NHS, and private healthcare company Randox.

Test results will be made available to GPs for inclusion on patient medical records through Health Diagnostics Ltd, a third-party private health company based in Chester.

Randox will hold none of the data from the test results, according to Sandwell Council.

Questions have been raised by the national Labour Party about the relationship between Randox and the Conservative party after the firm was awarded almost £500 million of public funds during the Covid pandemic for testing.

The funds – disclosed on a European contracts website in 2020 – followed a further report by The Guardian which revealed Randox was awarded a first government contract of £133 million. The newspaper noted the contract was awarded in a closed process, without being publicly advertised beforehand and without any other companies being asked to bid.

Randox came under intense criticism during the coronavirus pandemic when some coronavirus testing kits supplied by a Chinese manufacturer and sent out by Randox were not sterile.

At the time, the company was ordered to recall 750,000 unused kits. The failure delayed plans to provide testing for English care home residents and staff.

Meanwhile, in an investigation, Channel 4 Dispatches revealed Randox coronavirus tests were being accidentally discarded, leaking out of vials,  and potentially cross-contaminating.

A spokesperson for Sandwell Council said: “This procurement exercise has been carried out in a fair and transparent way for all potential providers. We have followed a clear and consistent process to assess each bid.

“The council is required to ensure that value for money is obtained, statutory requirements are met in terms of the law, and the council’s affairs are managed prudently and properly controlled.

“Randox passed all elements of the procurement process and demonstrated technical expertise and experience in delivering similar contracts in terms of size and their nature.

“We will work closely to ensure that all results are reported in a timely way and that operations meet expected standards throughout the contract.  We are satisfied that Randox met every element of the tender criteria.”

When queried about the contract to deliver healthcare checks by a private company, Randox emailed the LDRS and said it was “proud” to be working with Sandwell.

A spokesperson said: “During the Covid-19 pandemic Randox successfully processed 25 million PCR tests for the government’s national testing programme and to support international travel.

“The delivery of these tests had a major impact on the number of hospitalisations and deaths from Covid 19 and helped enable key workers to remain active during the crisis. Achieving this required the investment of tens of millions of pounds at the company’s own risk.

“The company is proud of its role in the pandemic, and proud to be working with Sandwell helping provide better health outcomes for residents.”

David Ferguson, chief operating officer for Randox Health said he was “delighted” to receive the contract. “It has long been our belief that early diagnostic health testing delivers better outcomes for individuals,” he added.

Labour councillor Suzanne Hartwell, cabinet member for adults, social care and health, said: “The good health of our residents has always been a priority for the council. This initiative will have a significant and beneficial impact on the health and longevity of thousands of people living in the area.

“It will enable those at high risk to take medical and lifestyle steps to prevent illnesses which could, if not detected early, shorten or change lives.”