The NHS has paid an undisclosed amount to Virgin Care after the firm sued over the loss of a contract across Surrey.

Six clinical commissioning groups (CCGs), as well as the county council, were involved in the case, brought after Virgin failed to win a child health services contract.

The size of the settlement is confidential, but the Health Services Journal (HSJ) reported that Surrey Downs CCG, which covers Epsom, Dorking and eastern parts of Elmbridge, listed its liability in the case as £328,000 in its monthly accounts.

Labour councillor Kate Chinn said: “Surrey CCGs having to pay this money is scandalous. This is money that should be being spent on doctors, nurses and frontline care, not going to companies.”

The HSJ reported the figure was taken down, and it no longer appears in the report.

It is not known what the other parties paid in the settlement.

A statement from Guildford and Waverley CCG, on behalf of the parties, said: “The parties are pleased to confirm that an agreed resolution on the litigation concerning the Surrey Children’s procurement has been reached to a satisfactory conclusion for all parties with detailed terms confidential to the parties.”

Virgin Care, set up by Richard Branson in 2010, took legal action after missing out on a children’s health services contract across Surrey worth £82million.

It had previously held the contract, now held by Surrey Health Children and Families Services, who took over the service in April.

Labour's 2017 Epsom and Ewell parliamentary candidate Ed Mayne said: "The amount of money involved is just shocking, at a time when the people who run the NHS say there isn't enough of it. "It's almost as if nobody wins. It just shows that the current model of running healthcare is not delivering."