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g this forced on them in the government's drive to privatise the NHS."

However, according to the Department of Health, whether sufficient consultation had taken place was the only concern in the case and not the principle of whether private healthcare providers should be involved in primary care.

A spokesman said: "Today's decision means that the PCT should go through its tender process again and consult on the criteria used. It has no wider implications for the NHS or for government plans to introduce new providers in primary care."

Plans to permit private healthcare providers to supply GPs in deprived areas where it has been difficult to approve adequate family doctors has been outlined in the January white paper. Two pilot projects are going on.

A statement from the trust said it welcomed the resolution of the dispute. "The court of appeal has clarified the way forward for the PCT to put in place the permanent GP provision the patients in Creswell and Langwith deserve," it said.

Richard Smith, the chief executive of UHE (whose vice-president is Simon Stevens, formerly Tony Blair's senior health policy adviser), said the firm would still provide primary care in another part of Derbyshire. "We believe that we can make a significant contribution in the region to reducing health inequalities."

Ms Smith's lawyer, Richard Stein, said: "We are pleased that the court of appeal has decided that not only was the PCT acting unlawfully when it selected UHE without involving patients, but that it will now have to go back and involve the patients."
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