Virgin Care, part of Sir Richard Branson’s business empire, appears to have been paid a settlement by the NHS after the healthcare group lost its bid to provide children’s services in Surrey.

The three-year, £82m deal covering health visitors, school nurses and speech and occupational therapy for children was awarded to a consortium formed by in-house NHS providers and a social enterprise.

Virgin Care Services started High Court proceedings against NHS England, Surrey County Council and the CCGs in November last year, after its bid failed.

It said there were “serious flaws in the procurement process” which had left it “so concerned” that it had launched the proceedings.

It sued six Surrey clinical commissioning groups, NHS England and Surrey County Council.

Virgin and the CCGs said the matter had been resolved, stating that the terms were confidential. But board papers for one of the six CCGs involved state that its “liability” in the case is £328,000.