Department of Health Principles and Rules for Cooperation and Competition
ACEVO declares neutering of "preferred provider" policy complete, as guidance for commissioners makes clear that competition has won the day
Third sector representatives ACEVO have welcomed the guidance documents published today by the Department of Health, which make clear that commissioners should not favour or discriminate against providers from any one sector, thereby effectively neutering Andy Burnham's "preferred provider" policy.
Stephen Bubb, CEO of ACEVO, said: "this guidance is the final nail in the coffin for the 'preferred provider' policy, which has been well and truly neutered. The Department of Health has today explicitly told NHS commissioners that they must not prefer providers from any one sector, and should instead be non-discriminatory and seek to remove barriers to third sector participation. The third sector has a huge amount to offer NHS patients, and we want to work in partnership with the NHS deliver better services. Now we can get back to working with the NHS to do just that."
The Department has published three pieces of guidance today: the revised Principles and Rules for Cooperation and Competition, the revised PCT Procurement Guide, and Commercial Skills for the NHS.
The revised Principles and Rules for Cooperation and Competition contain no references to preferred provider. Principle 2 of 10 is that "Commissioning and procurement must be transparent and non-discriminatory". The PCT Procurement Guide makes clear that: "the commissioning process, including any form of procurement, should be non-discriminatory and transparent at all times, including neither favouring nor excluding any particular provider" ; "the procurement process should not give an advantage to any sector (public, private, third sector/social enterprise)" ; and PCTs are required to "give all providers fair and equal opportunity to bid". It also includes a new annex on provider engagement, and states that "the NHS will continue to remove potential barriers to the participation of non-NHS providers". Commercial Skills for the NHS makes clear that "[for existing providers of services] the two formal opportunities to improve performance before contract termination will also apply to independent and third sector providers. Where services are tendered ... competition will be fair, open and non-discriminatory".
Stephen Bubb, CEO of ACEVO, said: "this guidance sends out a totally clear message to NHS commissioners: do not treat the NHS as preferred provider; but rather treat all sectors equally. I am pleased that this distraction is now over, and that we can concentrate on getting the best services for NHS patients."