A GOVERNMENT health regulator is considering whether to launch a formal investigation into the awarding of a £190 million contract to run mental health services in York.

Leeds and York Partnership NHS Foundation Trust (LYPFT) has written to Monitor to complain of losing the contract to run services in York. It has claimed the decision was biased and has asked for October's transfer of services to be suspended.

The trust has urged the regulator to investigate the role of Louise Barker, the Vale of York Clinical Commissioning Group's (CCG) lead for mental health, whose partner works for Tees, Esk & Wear Valley NHS Trust (TEWV), which has been awarded the contract.

However, the Vale of York CCG refuted the allegations of bias and said the whole decision process was conducted in accordance with strict regulations.

A spokesman for Monitor said: "We have received a complaint and we are reviewing it and we will announce a decision soon."

Should an investigation be deemed necessary, a team of lawyers and clinical and competition experts would be appointed to examine the decision process and to publish a "statement of issues".

The regulator can make recommendations should it find faults and can, in extreme cases, compel health authorities to restart tender processes.

In a recent, comparable dispute in Devon, Monitor found commissioners had not broken any rules.

LYPFT has written to Monitor to say there could have been an unintentional preference which impacted the outcome of the decision. The TEWV bid rated 0.5 per cent over the Leeds and York Partnership.

Chris Butler, chief executive of the Leeds and York Partnership NHS Foundation Trust, said: “The Board and I have serious concerns over the procurement process that took place. Also we do not believe that another major upheaval of local services in York and North Yorkshire is in the best interests of patients and their families."

A spokesperson for the Vale of York CCG said: "The CCG’s position is that it has adopted an extremely robust and rigorous process, and the CCG will confidently uphold that process as required.

"In the meantime, the CCG’s main objective is to ensure that providers deliver patient care so they remain safe during the mobilisation period of the contract."