INSOLVENCY practitioners have launched an investigation into the collapse of a private ambulance firm which suddenly lost a large contract with the NHS.

Investigations are being conducted into the liquidation of private medical firm, Medical (Europe) Ltd which traded as North of England Ambulance Service.

The company was used by the Yorkshire Ambulance Service (YAS) NHS Trust to bolster its ambulance cover in North Yorkshire, providing private ambulances and patient transport.

It had its ambulance headquarters at Showfield Lane in Malton, a fleet of 55 vehicle,s and was registered with the Care Quality Commission.

The Northern Echo has seen documents which show that in January this year (2014) the YAS suddenly stopped using the company, forcing its revenue to decline almost overnight to less than a tenth of its original monthly income.

The company was unable to continue and folded in August this year.

Now the insolvency firm, Lines Henry, which is dealing with the administration of Medical (Europe) Ltd is looking into recovering its assets for creditors.

It is also investigating whether its director Robert Arrand sold part of the company to a partnership he was involved in when Medical (Europe) was insolvent but before it was officially registered as in liquidation.

That partnership – of which Robert Arrand is a director - now owns the North of England Ambulance Service (NoEAS). The company now provides ambulance patient transfer to the NHS and private sector and event cover.

The insolvency firm is in the process of securing assets for creditors.

Robert Arrand vehemently denies any wrongdoing. He says NoEAS left Medical (Europe), before it went bust and the vehicles and assets it uses belong entirely to NoEAS.

Mr Arrand said: “The North of England Ambulance Service (NoEAS) is a privately owned ambulance service, which provides ambulances and paramedical services - using vetted, experienced and qualified staff - to both the NHS and private sector.

“Whilst Medical (Europe) LTD used to be the owner of NoEAS it was purchased by the current owners some time before Medical (Europe) LTD went into administration.

“We would like to make it very clear that NoEAS has had nothing to do with Medical (Europe) LTD since this and we do not know the status of any contracts with Yorkshire Ambulance Service.”

Administrator Neil Henry said as part of their investigation, they will be looking at whether the business was sold properly.

A spokesman for Yorkshire Ambulance Service NHS Trust, said: “As a professional ambulance service we respond to the overwhelming majority of our emergency patients using our own staff and vehicles.

"However, when demand for our emergency service is particularly high, our own resources can be complemented by St John Ambulance and private ambulance service providers. This is common practice amongst ambulance services throughout the country.

“The North of England Ambulance Service was contracted by the trust on a fixed-term basis until the beginning of 2014. We have not used this company to provide private ambulance support since then.”