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East Midlands Ambulance Service has lost its appeal against a decision to award a contract for non-emergency transport to two private companies.

EMAS lost the £130m contract for patient transport services in December.

Phil Milligan, EMAS chief executive said staff and volunteers were very disappointed about the decision.

EMAS holds the contract for services in Northamptonshire, Nottinghamshire, Leicestershire, Lincolnshire and Derbyshire until July 2012.

'Staff welfare'

Mr Milligan said: "This is very disappointing news for all our patient transport service staff and volunteers in the county who like me, were hoping for a different outcome.

"Now a decision has been made, we must focus our attention on looking after the welfare of staff and volunteers across EMAS who are affected by the loss of the tenders."

East Midlands Procurement and Commissioning Transformation (EMPACT), said existing patient transport employees in the East Midlands would be eligible for jobs with the new operators under the same terms and conditions as their current employment contracts.

Arriva Passenger Services Ltd is the preferred bidder for Nottingham City, Nottinghamshire, Bassetlaw, Leicester, Leicestershire and Rutland.

NSL Ltd is the preferred bidder for Northamptonshire, Lincolnshire, Derby and Derbyshire.