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A leading doctor has demanded Stephen Dorrell quit as either an MP or an adviser to a private firm targeting a lucrative NHS contract.

The Tory is in a conflict of interest row after taking up a post with KPMG which is considering bidding for a £1billion deal to manage the medical records of all patients.

Mr Dorrell quit as chairman of the powerful House of Commons Health Select Committee in June.

He told his local party he would step down at May’s general election because his new job was “incompatible” with his role as a £67,060-a-year MP.

But the Mirror can reveal he starts his new job on Monday and will be in both posts for six months.

The move sparked fury, with National Health Action party co-leader Dr Clive Peedell insisting Mr Dorrell can only do one role.

(Image: Peter Macdiarmid/Getty Images)

The cancer specialist said: “Stephen Dorrell admits his new job is ­incompatible with being an MP. If that’s the case, he should resign immediately or give up the new role.

“This also makes it clear why Mr Dorrell suddenly resigned as chair of the Health Select Committee. Clearly a better offer came his way.

“This case demonstrates everything that is rotten about our ­political system.

“One moment Mr Dorrell is the ­influential chairman of the Health Select Committee making ­important decisions about our NHS.

"The next he’s helping a private company in the frame for a multi-billion pound contract to run support services for our NHS.”

Christina McAnea, Unison health union boss, added: “There is a huge conflict of interest in this ­appointment.

"How can someone so close to government NHS policy work as an MP and with a firm trying to make profits out of patients?”

Mr Dorrell, who clocked up £129,673.32 in expenses for 2013/14 as well as a fee of £10,000 for his role as director of management services firm Faithful, will work three days a week for KPMG at its Healthcare and Public Sector practice.

The firm announced the former Health Secretary’s arrival last week.

It said on its website: “His knowledge and expertise will be a huge help.”

KPMG declined to reveal his salary – but it is expected to be a six-figure, pro rata sum.

It is one of 21 global companies which attended a secret NHS England meeting in London to “express interest” in the £1billion NHS contract – the largest ever in the history of the health service.

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As well as managing records, the business that wins the deal will supply administrative support to the NHS and handle letters to patients about breast and cervical cancer ­screenings, along with other tasks.

KPMG’s healthcare practice earned more than £2billion in revenue last year.

Mr Dorrell voted for the Health and Social Care Act in 2012, which opened the NHS to private firms.

He confirmed his new job will be for “21 hours a week”.

But he said of the letter to his local party: “It says it was incompatible with seeking re-election.

There is no ­incompatibility between being an MP and being a KPMG adviser.”