With most Private Patient Units (PPUs) now generating annual revenues ranging from £300k to £1m per bed there has never been a better time to set up a PPU. In this article I explain the options and the regulatory issues to consider when setting up a PPU, including procurement legislation, state aid rule interpretation and competition legislation.
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Many hospitals now outsource the dispensing of outpatient medicines. There are many benefits from doing so, including financial. For a medium sized acute hospital, the financial benefits are typically a few hundred thousand pounds a year. Having recently completed an outsource deal for two hospitals in Essex, here is my summary of the commercial model. Six years on from Lord Carter's second phase review and pathology consolidation is starting to pick up pace in the UK. During 2015 we have seen a growing number of enquiries about how to consolidate pathology and what model offers the greatest potential. My previous blog, available here, gives advice on this. Below is an infographic file available for download that plots the main developments since Lord Carter's second phase review of pathology in England and Wales. I have posted an article on Linkedin that provides commentary on this.
Under the Public Contracts Regulations 2006, healthcare contracts were within Part B and not subject to the full regulations. There was no requirement for any form of prior advertising or competitive tendering of Part B services unless there could be cross border interest (although the general obligations of transparency, equal treatment, non-discrimination and proportionality applied). Alongside PCR 2006, since April 2013, commissioners of healthcare have also had to comply with the NHS (Procurement, Patient Choice and Competition) (No. 2) Regulations 2013 (known as the section 75 regulations), which are enforceable by Monitor. This situation changed on 26 February 2015, when the Public Contracts Regulations 2015 came into force and removed the distinction between Part A and Part B services. In this short article I consider the implications of the new regulations for organisations planning to develop one of the new models of care in the Five Year Forward View (5YFV), either as a Vanguard site or fast follower, and I explain why it may be sensible to ‘commence’ a procurement, sooner rather than later. The new Public Contracts Regulations 2015 come into force today (26 February 2015) and provide an extended range of procedures, compared to the previous 2006 Regulations. The open, restricted and competitive dialogue procedures remain (with some refinement), the negotiated procedure is replaced by a competitive procedure with negotiation, and an entirely new procedure called ‘Innovation Partnership’ has been introduced. Read on to explore the opportunities this presents. |
Mark Magrath MBAI am a management consultant with 12 years experience as an executive director in an NHS Foundation Trust, including 10 years as Deputy Chief Executive. I only write blogs on projects and assignments that I have personally led. My aim is to write amazing content that combines real world experience with insightful advice. Categories
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August 2021
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