Implications for the NHSof the Procurement Act

As the UK separated from the EU, it was no longer subject to the obligations of the EU Public Contract Regulations 2015. A new piece of legislation, the Procurement Act 2023, was therefore drafted, with the hope of overhauling previous policies. The Procurement Act 2023 was made law on 27 October 2023, but pending a change in government, its coming into force was postponed to 24 February this year, alongside the publication of the National Procurement Policy Statement.

The new bill has the aim of 'improving and streamlining the way procurement is done', and 'benefiting prospective suppliers of all sizes, particularly small businesses, start-ups, and social enterprises',1 by changing how public bodies buy goods and services. While these changes will without doubts pose challenges to NHS bodies, by leveraging technology and automation, procurement teams can integrate the bill's requirements into existing procedures, minimising setbacks or delays.

Previously, NHS procurement was regulated by the Public Procurement Contracts Regulation (PCR) 2015, and the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR 2023), a set of bespoke regulations covering procurement of certain healthcare services in England (excluding Wales). The scope of these services covers those delivered to patients and users by relevant authorities. The PSR 2023 is applicable to NHS England, Integrated Care Boards (ICBs), NHS Trusts and NHS Foundation Trusts, local authorities, and combined authorities.