The introduction of the new Provider Selection Regime (PSR) marks a significant shift in how public sector providers and commissioners approach the procurement of healthcare services. Designed to replace the traditional competitive tendering process, the PSR offers a more flexible and proportionate framework for awarding contracts. This change is particularly relevant for NHS commissioners including Integrated Care Boards (ICBs), and other relevant authorities, as it allows them to focus on collaboration and patient outcomes rather than rigid procurement rules.

 

 

Key features of the PSR is the emphasis on alternative methods for selecting providers.  Techniques including hybrid benchmarking and best value which have been used in central and local government for many years have emerged as powerful tools in this context.

 

Hybrid benchmarking combines elements of performance and process benchmarking, enabling commissioners to assess providers based on a mix of quantitative metrics and qualitative insights. This approach not only ensures that a suitable provider is selected but also fosters a culture of continuous improvement.

 

 

Best value techniques, on the other hand, focus on achieving the optimal balance between cost, quality, and outcomes. By balancing value and price, these techniques align closely with the PSR's objectives of enhancing patient care and system efficiency. For instance, commissioners can use these methods to evaluate the long-term benefits of a provider's services, such as improved patient satisfaction, integration across wider systems or reduced hospital readmissions, rather than just the direct service costs. 

 

 

However, the transition to these new methods is not without challenges. Commissioners must navigate a complex landscape of regulations, stakeholder expectations, and potential legal risks.

 

This is where organisations like At Scale come into play.