Virgin GP surgeries: Sir Richard Branson buys into NHS drop-in group

Sir Richard Branson today branched into GP healthcare as Virgin bought a controlling stake in an operator of NHS walk-in centres.

Branson will be offering outpatient services, diagnostic procedures and even day care surgery under the NHS — although he will gauge opinion before rebranding centres under the Virgin name.

The tycoon is using a unit of his company under the name of Virgin Healthcare to buy 75% of the so-called GPCo business of Assura Group, which is the largest owner of doctor's surgeries in the UK and also runs pharmacies in GP centres.

The GPCos provide healthcare in partnership with groups of GPs. Assura Medical's 30 partnerships include 1,500 GPs and care for more than three million patients in England.

Branson, who first considered becoming involved in healthcare in 2007, said today: "I'm excited that Virgin and Assura will contine to develop this business, working alongside our NHS partners, to being excellent, high-quality services right to the heart of patients' communities."

Assura chief executive Richard Burrell, who will join the board of Virgin Healthcare, said: "This division has been lossmaking since we set it up in 2006 - as we always anticipated at this stage.

"Ramping up a new business model with the NHS is a very capital-intensive business which will require further capital which we simply have not got. Virgin can provide that financial support."

Virgin will pay it £4 million but Assura is also lending the operation £4 million and retaining a 25% stake.

The Government is expected to contract out more GP work in the hope of cutting spending to deal with the budget deficit.