Outsourcing? Of biomed services?
There has always been a certain amount of kit "on contract" wherever I have been (generally stuff that we couldn't take care of ourselves, for whatever reasons).
But I guess you're talking about having a Company come in and take over the whole Biomed Department there, Billy. Why not? You could be in charge!
In the NHS setting, the Manager works for the Trust, and has the Budget. He also has the Task (namely tech support and maintenance of the kit), so - hopefully - he applies his Budget with due diligence to achieve his aims.
Some tasks can only be carried out by bringing people in. One-off jobs, installations and the like. And some specialist kit is best left to contractors, under the watchful eye (again, we hope) of the Manager.
It's nice to have the continuity and local knowledge that the traditional, directly employed biomeds can provide. But there can be downsides to that arrangement as well.
As I've probably said before, as long as every bit of kit is covered, it shouldn't matter too much
how (and/or by who) it gets maintained. Just as long as it all gets properly managed (again, I stress).
The "mistake" that folk (or should that be:- idiots?) make is to embrace the notion of "outsourcing" from the viewpoint of "saving money".
The kit (
all the kit) has to be maintained somehow. If the in-house crew can't do it all, for whatever reason(s), then there's no harm in bringing in others to do it. Just as long as it's properly managed, with the realisation firmly entrenched that tech support costs money, whichever way you look at it.

I don't know anything about Whipps Cross ... but if it failed, it will have failed due to poor management.