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Client Name: NHS Barking and Dagenham

Client Details: NHS Primary Care Trust

We acted for NHS Barking and Dagenham (the PCT) on the transfer of its community services business to North East London NHS Foundation Trust (NELFT) for a period of almost two years. This involved the negotiation of a business transfer agreement for the transfer of assets from the PCT to NELFT and the award by the PCT of a community services contract in the standard Department of Health form to NELFT. The transaction completed on 13 July 2009.

This major corporate transaction was only the second one of its kind in the country.  The FT will be the host of these services and their staff for almost two years after which a competitive process to provide the services will be run by the PCT.

The transaction is a significant milestone in the PCT’s progress towards becoming a world class commissioner of high quality local health services. It will enable the PCT to transform the provision of its community services. 

The transaction was also the first to be assessed and approved by the Co-operation and Competition Panel.

Christian Dingwall led Hempsons’ Corporate Commercial team with Jamie Foster and with support from the firm’s Employment and Real Estate teams. 

Christian Dingwall said: “The transaction is the first of its kind in London and the South East.  It is also the first to be assessed and approved by the Co-operation and Competition Panel (CCP).  It was necessary to work up a legal framework for contestability, to put in place a detailed due diligence process, and to negotiate arrangements for the transfer or retention and licensing of assets that included premises and contracts.  To do this, we devised and negotiated a suitable Business Transfer Agreement and worked with the Department of Health’s standard Community Health Services Contract.  These steps introduced a new, commercial rigour into the NHS commissioning process.”

Chief executive for the PCT, Stephen Langford, said: "NHS Barking and Dagenham are concentrating on commissioning the best quality services for local people, making them truly world-class. It is part of a welcome change to the role of primary care trusts and it allows us to develop our strategic planning capabilities while NELFT Community Health Services focuses on providing excellent services to our residents.”

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