ACEVO takes case against "NHS as preferred provider" to Competition PanelFollowing the Secretary of State for Health's statement that "the NHS is our preferred provider", ACEVO has taken a case to the Department of Health's own Co-operation and Competition Panel arguing that a PCT that excluded third and private sector organisations from bidding for a contract on the basis of Andy Burnham's words has acted anti-competitively. The case has implications for the health system as a whole. ACEVO is taking the case to the Co-operation and Competition Panel on behalf of ACEVO members, many of whom are reporting that Andy Burnham's statement that "the NHS is our preferred provider" is having a significant impact on NHS commissioners. The case in question involves Great Yarmouth and Waveney PCT. Earlier in 2009, the PCT signalled its intention to providers that it intended to invite tenders for its Community Services, currently being delivered by the PCT’s own provider arm. It held an information day on 5 October 2009, and informed providers that it intended to issue a Memorandum of Information and Pre-Qualification Questionnaire in October or November. Having decided that the best way to meet the needs of its patients and population was to tender these services openly to all providers in the market, the PCT then reversed its decision and on 24 November informed interested parties that it would now only accept bids from NHS organisations. In explaining this reversal, the PCT did not suggest that it had changed its view that tendering the service would be the best way to meet the needs of its patients and population. Rather, it attributed the reversal of its previous decision to the Secretary of State’s statement that “the NHS is our preferred provider.” Nor did the PCT state that its intention was to give the incumbent provider “an opportunity… to improve before opening up to new potential providers,” as the chief executive of the NHS has suggested this “preferred provider policy” amounts to. Rather, the PCT expressed its desire to contract with a “new provider”, but “limiting the pool of potential bidders to NHS organisations.” You can read coverage of the case on the FT's website, or contact Ralph Michell for more details on ralph.michell@acevo.org.uk
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