As discussed in our previous blog ‘Understanding the Provider Selection Regime to ensure Quality Care and Improved Commissioning’, the Provider Selection Regime, will provide a clear list of decision-making circumstances, when each will apply, and the procurement routes and publications required for each.
The first step for decision makers under the Provider Selection Regime (PSR) will be identifying which “decision circumstance” will apply. Please find a summary of the named circumstances and their specific requirements here.
In this blog we will explore when a service will be considered a ‘Considerable Change’ under PSR.
Permitted changes that will not be deemed as considered
PSR consultation sets out that decision makers need to complete an assessment for all variations made to a service since the last contract was implemented and any proposed new changes that are being considered.
There will be a number of permitted changes that will not be deemed ‘considerable’, these may include:
- The variation is clearly and unambiguously provided for in the original contract (that is, that the scope and nature of the potential change has been described) and published as part of the original process carried out under the Provider Selection Regime
- The variation is solely because the identity of the provider changes (for example as a result of a corporate takeover or merger) where this does not affect the ability of the (new) provider to deliver the service and there are no other considerable changes to the contract
- The variation has occurred because the decision-making body decides to make a variation in response to external causes beyond the control of the decision-making body, including but not limited to the following:
- Changes in contract value which are driven by changes in patient volume
- Changes in contract value which are related to uplifts in prices published in the NHS payment system (national tariff), or in accordance with a formula (for example, index linking) provided for in the original contract, and is referenced in the published contract award notice as part of the original application of the Provider Selection Regime
A change will be deemed considerable if it materially alters the nature of the contract or when all of the following conditions are met:
- The change is initiated by the decision-making body
- The cumulative change in the lifetime value of the contract is above £500,000
- The cumulative change in the lifetime value of the contracts is over 25% of the original lifetime value of the contract
If you would like more information on how to prepare ahead of PSRs implementation, please reach out to our Service Development via email at firstname.lastname@example.org or Kieran.email@example.com