THE NHS trust responsible for running mental health services in York has lost a £190 million contract to continue running the service, The Press can report. 

Leeds and York Partnership NHS Foundation Trust (LYPFT) has run mental health and learning disability services in the York area and part of North Yorkshire since 2012. 

But it has not been chosen to continue providing the service by the Vale of York Clinical Commissioning Group (CCG).

The decision follows an inspection by the Care Quality Commission (CQC) which was critical of how Leeds had far superior services to York.

A letter sent to LYPFT employees by chief executive Chris Butler and seen by The Press said: "We are, as you can imagine, extremely disappointed.

"The conditions of the tender process meant that we were not allowed to disclose this information last week. However we know that many staff have become aware of the news via colleagues in other organisations so I felt it was right that we let you know what is currently happening. I know this is of great concern to many of you and I apologise for not making our position clear until now.

"The tender process was very competitive and following careful consideration and deliberation, the Trust Board has decided to challenge this decision via the channels available to us."

The LYPFT runs mental health services in York including Bootham Park Hospital and Lime Trees. 

There have been a series of problems relating to mental health services in the city. Earlier this year the Care Quality Commission (CQC) released a critical report into the LYPFT, describing a "Tale of Two Cities" in which Leeds had far superior services to York.

In their report earlier this year, the CQC said the 240-year-old Bootham Park Hospital was not fit for purpose.

At the time LYPFT said it was doing what it could in York with the money available and said York urgently needed a new mental health hospital.

Local NHS campaigners have expressed concern at the news, saying mental health services should not be "kicked from provider to provider". 

Dr Mick Phythian, of Defend Our NHS York, said: "Whilst there were obvious failures by the winner of the last attempt (Leeds & York PFT) some of this blame has to go to the CCG and the actual tendering process with the expected cost being greatly undervalued.

"There will now be a large number of patients wondering where they stand with regards to existing treatment and people on waiting lists wondering when, where and by whom that treatment will be delivered.

"Mental health care, like health care, is not a tangible asset that can be kicked around from provider to provider but something that is built on trust and stability."

In his letter to staff Mr Butler said there would now be a period of standstill as the CCG considered a challenge from them and that "until then, the process has not concluded".

The Vale of York CCG has refused to comment on the matter, citing strict confidentiality rules over the procurement process. 

It is unclear how the new contract will impact the hundreds of people working for the trust in the York area however there will be no changes immediately as the contract is not up until October.

Commissioners should also be seeking as smooth a transfer as possible should this happen.