Procurement in a Nutshell: Independent Patient Choice and Procurement Panel: Decision CR0049-26
5th June, 2026
The Provider Selection Regime (PSR), set out in the Healthcare Services (Provider Selection Regime) Regulation 2023, came into force on 1st January 2024.
The PSR removes the procurement of health care services from the scope of the Procurement Act 2023, which came into force from 24 February 2025.
The PSR applies to NHS England, Integrated Care Boards, NHS Trusts, NHS Foundation Trusts, local authorities and combined authorities when they are procuring relevant healthcare services.
To access the full decision, please click here.
Background
The Independent Procurement Panel (the Panel) provides advice under the PSR to relevant authorities in circumstances where a provider is aggrieved by an award decision, and the provider believes the PSR Regulations have not been complied with.
The role of the Panel is to provide independent expert advice (as referred to in Regulation 23 of the PSR Regulations) and publish this advice for each review it undertakes.
Relevant authorities should note that, while the advice of the Panel is not legally binding, it is highly persuasive.
The facts
On 24 February 2026, Endocare Diagnostics Ltd (Endocare) asked the Panel to advise on the provider selection process conducted by Northern Care Alliance NHS Foundation Trust (NCA) for its Digestive Diseases Insourcing Service (DDIS).
NCA used the competitive process under the PSR regulations to select a provider for the DDIS via a ‘mini competition’ between providers accredited to the NHS Workforce Alliance framework agreement.
Endocare is the incumbent supplier and has been providing DDIS at NCA since 2017, winning contracts following competitive selection processes in 2018 and 2021. Endocare’s current contract was due to end 28 February 2026.
On 13 October 2025, NCA published a notice on the Find a Tender Service website, setting out its intentions to conduct a mini competition between suppliers on the NHS Workforce Alliance Framework Agreement with a link to the tender documentation.
NCA received proposals from twelve providers, including Endocare and the successful bidder, Venture Health Group Ltd. The Panel understands that Endocare and Venture are both owned, or part-owned, by NCA employees.
On 16 January 2026, NCA informed bidders of the outcome of the provider selection process and announced Venture as the successful bidder. Endocare’s proposal was ranked fourth.
On 26 January 2026, before the end of the standstill period, Endocare raised concerns with NCA about the provider selection process. On 17 February 2026, NCA communicated its further decision to proceed with Venture.
The decision
The Panel found one breach of the PSR regulations had occurred. As a result, the Panel’s view is that the breach identified is likely to have had a material effect on NCA’s provider selection process. That is, if NCA had complied with the PSR regulations and correctly applied its scoring methodology, then it may have selected a different provider as the successful bidder. As such, the Panel’s advice is that NCA should return to an earlier step in the provider selection process to rectify the issues.
The breach was as follows:
- By NCA not applying the scoring definitions set out in the tender documentation when evaluating bidders’ proposals, it breached the PSR regulations and in particular Regulation 4 and Regulation 11(5).
- Regulation 4 obliges commissioners to act transparently and fairly.
- Regulation 11(5) requires commissioners to assess any offers received in accordance with the contract award criteria.
What does this mean?
In practical terms, this decision reinforces that compliance with the Provider Selection Regime is essential as if not followed, outcomes can be invalidated.
It also highlights that scoring definitions in tender documents must be applied exactly as written. As such, future processes need:
- Clear scoring frameworks;
- Audit trails showing how each score was derived;
- Evaluators trained to apply the scoring system consistently.
For further information, please contact Tim Care or Melanie Pears in our Public Sector team.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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