21 March 2008
An independent competition panel is to be set up to ensure the award of contracts to provide NHS treatment is fair.
Primary care trusts have been asked to put out to tender any new or significantly altered services. Contracts should then be awarded to the provider that is 'best placed' to offer the service.
However, with competition expected to be fierce – as private firms, GP consortiums, NHS foundation trusts and others jockey for contracts – the Department of Health said it would establish a dispute resolution system.
Bidders who feel a PCT has not run the tendering process properly will be free to appeal to the panel. It is not clear at this point whether other parties, such as patients, will also be able to lodge objections.
The primary care-based NHS Alliance backed the move. It said the arbitration panel would allow innovation to flourish throughout the NHS. 'There are all sorts of groups who want to do something new and innovative to improve local health care. The NHS needs that entrepreneurial spirit and in most cases it is encouraged,' said chair Dr Michael Dixon.
But he added: 'Like any other, the market in health care provision needs a regulatory system to make sure it is working as it should. That should be independent of both local NHS organisations and Whitehall.'
The panel, which will include private sector representation, is part of the DoH's world-class commissioning programme.
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