Procurement changes coming into force on 1 January 2024 - what you need to know about the Provider Selection Regime

On 19 October 2023, the Department of Health and Social Care (DHSC) introduced the Health Care Services (Provider Selection Regime) Regulations 2023 to Parliament. Subject to parliamentary scrutiny, the DHSC intends for the Provider Selection Regime (PSR) to come into force on 1 January 2024.

NHS England has also published draft statutory guidance on the PSR and is running various training sessions to support commissioners.

What is the PSR?

The PSR is a new set of rules for arranging public healthcare services in England. Its stated aims are to promote collaboration, patient choice and flexible decision-making. It replaces the current procurement regime and makes it easier to commissioners to extend contractual arrangements with effective existing service providers, as well as implementing new parameters for selecting new healthcare service providers. The aim is to move away from the expectation of competition in all circumstances. Read our previous article on the PSR here.

What are the implications for challenging a procurement process?

Under the current regime, you can apply to court to challenge breaches of the procurement rules. If proceedings are commenced prior to the end of the standstill period, the award of the proposed new contract is automatically put on hold. The new proposal sets out a limited internal review process - the NHS intends to 'mark its own homework'. In many cases, the option of judicial review will still be available, but it is clear that DHSC has sought to minimise scope for legal challenge.

How can we help?

If you intend to bid for healthcare contracts in future, you will need to keep on top of the new rules and guidance as and when they come into force. We will be rolling out training to healthcare organisations in relation to the PSR and new procurement regime in the coming months.

If you would like bespoke training on the PSR and updated procurement regime for your organisation, or if you would like to book in a time to discuss the implications of the changes for your organisation, please contact Rachel Crean in our Healthcare team on 07387 025 973, or Stephanie Rickard in our Procurement team on 07384 251 896. Alternatively, please complete the form below.