A private company is understood to have lost its bid to run a GP practice in what would have been the first case of its kind in Scotland.

A private prison company is understood to have lost its bid to run a GP practice in what would have been the first case of its kind in Scotland.

Serco, which runs Kilmarnock jail, is believed to have been rejected last night by an independent panel of doctors and patients in favour of a traditional GP-run surgery.

The company had bid to run the Harthill surgery in North Lanarkshire, which has 4081 patients on its books. It followed NHS Lanarkshire's decision to open up tendering to "alternative health providers" as well as GPs after a practice was dissolved.

Three bids were received, two from GP practices. The winner is believed to be Dr Louise Eccles, one half of the previous Harthill practice. The panel's decision must now by signed off by the chief executive of NHS Lanarkshire on Monday.

Serco's attempt to run the Harthill practice was revealed by The Herald in November.

The involvement of the global services firm prompted warnings of NHS privatisation.

South of the border, where 3% of GP practices are run by private companies, critics claim services are cut to boost profits for shareholders, with more nurses and fewer doctors treating patients.

In Scotland, there were concerns about ties between Serco and NHS Lanarkshire. Dr Colin Barrett, until last August clinical director of the health board's out-of-hours service, is now a medical director at Serco.

NHS Lanarkshire's associate medical director, Dr Philip McMenemy, is also contracted by Serco to provide consultancy work and out-of-hours services.

Carolyn Leckie, Scottish Socialist MSP for Central Scotland, who led the fight against the firm, said she was relieved at the result. "If it wasn't for the fight put up by the community and the patients, I fear NHS Lanarkshire would have got its way and let in an outside provider," she said.

NHS Lanarkshire declined to comment on the winning bid. However, a spokesman said the board did not foresee any circumstances in which the chief executive would overturn the panel's recommendation.