Guardian News and Media/London

One of the main providers of the NHS 111 helpline is to pull out of all its contracts because, it says, they are “financially unsustainable”.

NHS Direct, which had already withdrawn from operating the non-emergency phone service in North Essex and Cornwall, announced that it was seeking “a managed transfer”, including of frontline and other staff, related to nine other contracts.

It said it would “provide a safe and reliable service until alternative arrangements can be made by commissioners”.

The organisation originally won 11 of the 46 contracts to provide the 24-hour service.

The NHS 111 line, which replaced NHS Direct as the number to call for urgent but non-emergency care, has been riddled with controversy since it began on April 1.

The British Medical Association last month called for an independent inquiry into the “disastrous” rollout of the service.

A Channel 4 Dispatches investigation screened yesterday night, NHS Undercover, found the system had staff shortages, long waits for callers, and in some cases ambulances were being called out unnecessarily.

NHS England said it would support commissioners of NHS 111 services to put in place alternative providers to take over the 111 services provided by NHS Direct. It said callers in the areas currently served by NHS Direct would continue to receive a “prompt and safe service”.

Local GP-led clinical commissioning groups were “actively discussing with a range of potential providers the best way to continue providing a high quality 111 service for patients”, NHS England said.

Dame Barbara Hakin, deputy chief executive of NHS England, said: “Over 90% of NHS 111 calls are now answered in under a minute and patients are rating the service highly. Our immediate focus is to ensure that this level of service and improvement is delivered consistently.

“We have been in discussions with NHS Direct for some time over this issue and they have assured us they are committed to continue to provide services. We are also having constructive discussions with a number of potential new providers who could take on these contracts, specifically with the local ambulance trusts who have experience and a strong track record in provision of similar services.”

She said a full 111 service would be available throughout the transition.

“The public should not feel any detrimental effects of changes in the providers of the service. This decision has been taken by all parties to make sure that 111 delivers a sustainable high level of service to all callers in the years ahead.”

She said NHS Direct’s contracts would “come to an end in a planned and managed way throughout 2013-14”.

The Dispatches programme revealed the findings of two reporters posing as trainee call handlers who secretly filmed at centres run by the private healthcare company, Harmoni, which has a third of the 111 contracts in England.

Footage shot at the branches in Dorking, Surrey, and in Bristol revealed “serious failings in the system”.