25/03/10

By Andrew Holt

ACEVO was celebrating today after the Government reversed its NHS preferred provider policy, meaning Third Sector organisations will be able to compete on equal terms to run health care provision.

The Department of Health 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 new PCT Procurement Guide states: "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" and "the procurement process should not give an advantage to any sector (public, private, third sector/social enterprise)"

The revised Principles and Rules for Cooperation and Competition contains no references to preferred provider.

Principle 2 of 10 is that "Commissioning and procurement must be transparent and non-discriminatory".

The PCT Procurement Guide also states: "Primary Care Trusts will continue to work with the independent and third sectors, particularly where new services or new service models are required to meet future needs or to offer patients more choice."

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".

This is a turnaround from Andy Burnham, the health secretary's announcement in September last year that NHS organisations were to be the service's "preferred provider" of care.

Peter Kyle, ACEVO deputy chief executive, told ACEVO's A Joined Up Future for Community Health and Social Care? conference this morning: "This is reversal of policy by the secretary of state [for health] and a great achievement for the ACEVO policy team who have been putting the case to change the Government's position."

Stephen Bubb, ACEVO chief executive, added: "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."

Furthermore, the programme designed to foster closer working between Third Sector organisations and the Department of Health will be expanded to include five more organisations, Care Services Minister Phil Hope announced today.

The Third Sector Strategic Partner Programme was launched in April 2009 to improve communication and dialogue between the Department and the 35,000 third sector health and social care organisations across England.

The new group of organisations will extend the reach of the programme by providing representation to additional areas of this diverse sector, including mental health, military services and women's health.

Eleven organisations were originally selected to become strategic partners, and today's announcement will see this number increase to sixteen.

The new strategic partners are:

* Mental Health Providers Forum
* Carers UK, Princess Royal Trust for Carers and Crossroads
* Women's Health and Equality Consortium
* Royal British Legion / Combat Stress
* NACRO and Action for Prisoners' Families

The new partners will extend the reach of the programme by providing representation and engagement from additional areas of this diverse sector, such as mental health, military services and women's health.

Each organisation will receive a share of £950,000 for 2010/11.

Care Services Minister Phil Hope said: "Third sector organisations are involved in so many areas of healthcare today, from frontline services right through to advocacy and support for service users, patients and carers.

"The Strategic Partner Programme plays a key role in supporting third sector organisations to work with the NHS to deliver better health and social care services for everyone. I'm delighted to announce five new strategic partners and look forward to working with them in future."