The Provider Selection Regime (PSR) came into force on 1 January 2024. It sets out the approach that NHS bodies and local authorities must follow when arranging healthcare services.
The PSR replaces previous procurement rules for these services. Its aim is to make the commissioning process more flexible, proportionate, and responsive to local needs, while ensuring that decisions are transparent and accountable.
The Regime provides a focus on the importance of:
- Quality of services
- Continuity of care for service users
- Collaboration and integration between providers
- Reducing health inequalities and improving access
- Social value and community benefit
Under the PSR, authorities can choose providers using one of five processes:
- Direct award A – existing provider is the only capable provider
- Direct award B – people have a choice of providers, and the number of providers is not restricted by the authority
- Direct award C – the existing provider is satisfying the existing contract and will likely satisfy the proposed new contract which is not changing considerably
- Most suitable provider process – the authority makes a judgement on which provider is most suitable based on consideration of the key criteria, and awards without competitive tender
- Competitive process – where the authority cannot use any of the other processes or wishes to run a competitive exercise
Although the PSR allows greater flexibility, it also requires openness. Bradford Teaching Hospitals NHS Foundation Trust publishes:
- Transparency notices explaining decisions such as direct awards
- Contract award notices confirming which providers have been appointed
These notices are available via the government’s Find A Tender Service (FTS), ensuring that the public and stakeholders can see how decisions are made.
