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by Ian French, Senior Category Manager – Health NHS Shared Business Services. |
The healthcare environment is continuously developing, leading to changes in how NHS organisations procure services. One of the most significant changes is the introduction of the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR), which sets out new statutory rules for how healthcare services are procured.
Our Insourcing of Clinical Services Framework Agreement, awarded under the Public Contract Regulations 2015 (PCR2015), remains a compliant and reliable route to market under these new regulations – as covered by the transitional arrangements within and noted within the transitional arrangements for framework agreements arranged under the PCR of the Statutory Guidance from NHS England
Framework agreements established before 1 January 2024, may be utilised in accordance with the terms set forth in the framework agreement. Contracts initiated from a framework agreement established prior to the enforcement of the PSR must adhere to the processes outlined in the framework agreement.
Supporting NHS organisations through change
NHS England acknowledges that framework agreements, like the Insourcing of Clinical Services Framework Agreement, awarded prior to the implementation of the PSR may still be utilised under “Transitional arrangements for framework agreements arranged under the PCR”.
We recognise that regulatory changes can present challenges. Therefore, we are committed to supporting relevant authorities throughout the transition.
Whether assisting you in understanding the implications of the PSR on your procurement strategy or providing guidance to ensure a compliant competitive process, our team is available to support you.
Our services include:
- Advice on navigating the PSR and PA23
- Reliable templates to facilitate your procurement activities
- Practical support in designing a competitive exercise
What implications does this have for our approved organisations (who are relevant authorities as determined under the PSR) and the suppliers we collaborate with?
Built for flexibility and compliance
Our Insourcing of Clinical Services Framework Agreement has been developed with a focus on flexibility and compliance. It allows relevant authorities to engage third-party clinical providers to deliver services on their premises, often during evenings and weekends, thereby supporting efforts to reduce waiting times and improve patient access to care.
Under the PSR, relevant authorities are provided with increased flexibility regarding provider selection, with an emphasis on transparency, collaboration, and value for patients. At NHS SBS, we undertook an assessment of bidders’ economic and financial standing, their technical and professional ability to deliver the specific services, and ensured the tender process aligned with the supplier questionnaire requirements of PCR2015, the tender also included questions within the award criteria focusing on quality and innovation, value for money, integration, social value and improving access, further information can be found within the Buying Guide via our Customer Framework Agreement Portal (CFAP).
Please be advised that awards without competition (direct awards) under a framework agreement are not conducted via the PSR direct award Routes A, B, and C, as these procedures do not apply to framework agreement call-offs. Under the PSR, the direct award processes A, B, and C are distinct from the procedures for calling off contracts from a framework agreement.
While both involve “direct award,” the context and underlying rules differ. Under PSR, direct award processes A, B, and C are specific legal mechanisms for awarding contracts based on unique circumstances (single capable provider, patient choice, or continuation with a satisfactory provider) whereas for a framework agreement the direct award is without reopening competition for a specific service. For additional information, please consult Regulation 18 of the PSR.
When awarding a call-off contract via a framework agreement utilising a further competition, relevant authorities must award call-off contracts in accordance with the terms and conditions of the framework agreement.
What this means for suppliers
The PSR offers an opportunity for our suppliers to establish and strengthen long-term, trust-based relationships with approved organisations. Insourcing of Clinical Services ensures that suppliers meeting our framework agreement award criteria can provide services in a compliant, efficient, and patient-centred manner.
We are dedicated to maintaining open communication channels to keep suppliers informed and supported as regulatory requirements and industry standards evolve.
Looking ahead
PSR represents more than just a change in regulations – it signifies a shift in approach. It promotes the prioritisation of patient-centred care and collaboration between partners who share this commitment.
We are committed to leading this transition. Through our Insourcing of Clinical Services Framework Agreement, we support the delivery of safe, timely, and effective healthcare services in partnership with our suppliers, while streamlining procurement processes to enhance strategic outcomes.
If you require assistance or have questions regarding the PSR, PA23 or Insourcing of Clinical Services, our team is available to support you.
Useful links
Procurement Regulations – Support and Guidance
For more information
