News Update
Community Services: accelerating the pace of transformation
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8 Feb 2010
Transforming Community Services: The assurance and approvals process for PCT-provided community services
The Department of Health has published new guidance that mandates PCTs to externalise their community provider services in all but exceptional cases. It confirms the requirement of the NHS Operating Framework 2010-11 that by 31 March 2010 PCTs must have agreed with SHAs proposals for the future organisational structure of all current PCT-provided community services.
"Agreed with SHAs" means that PCTs should have secured approval in principle from SHAs for proposals for the future organisational form of their directly provided community services.
The deadline of 31 March 2010 for the approval in principle of organisational form has been set to accelerate the pace of transformation of community services and provide greater certainty for staff. Implementation of any new provider form (or very substantial progress) will need to be completed by 31 March 2011.
The most likely options for organisational form are vertical integration (with an acute or mental health provider), horizontal integration (with another community provider) or social enterprise. "Integration" means the single management of services.
Exceptional options may be Community FTs "for a very few areas" or continued PCT direct provision or Care Trust. But the guidance is clear that, "PCTs should principally be commissioning organisations." If any proposal for continued direct provision is being considered, then the host PCTs would have to demonstrate very strong commissioning skills, including performance in WCC assessments equal to the thresholds set in the Operating Framework.
The guidance recommends that PCTs should obtain legal advice on patient and public involvement duties and staff consultation duties. Additionally legal advice will be required on merger and acquisition, organisational form, transaction process, due diligence, procurement and competition.
Hempsons are leaders in TCS work for the NHS. We acted for NHS Stockton and Hartlepool and NHS Barking & Dagenham on their ground breaking transactions for the transfer of community services to acute and mental health providers. We are advising PCTs, FTs and NHS Trusts about mergers, partnerships, social enterprise and Community FTs.
If you would like further information or if you require advice on any of the above, please contact us on: enquiries@hempsons.co.uk
This news update is made available on the basis that no liability is accepted for any errors of fact or opinions it may contain. Professional advice should be obtained before applying the information to particular circumstances.
© Hempsons 2010
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