Understanding the NHS Provider Selection Regime: A Guide for Healthcare Bidders

The NHS Provider Selection Regime (PSR) marks a significant shift in how healthcare services are commissioned in England. Introduced to replace previous procurement rules under the Public Contracts Regulations 2015 for healthcare services, the PSR aims to reduce unnecessary tendering and streamline the process of selecting healthcare providers. For healthcare bidders, understanding this new framework is crucial to remain competitive and compliant.

In this guide, we break down the essentials of the NHS Provider Selection Regime, explore its selection processes, and offer expert insights to help you navigate this evolving landscape with confidence.

What is the NHS Provider Selection Regime?

The NHS Provider Selection Regime came into effect on January 1, 2024, under the Health and Care Act 2022. It applies to the procurement of healthcare services by NHS bodies, Integrated Care Boards (ICBs), NHS England, and local authorities. Its primary objective is to move away from rigid competitive procurement for every contract and instead focus on securing the best outcomes for patients and communities.

The PSR empowers commissioners with greater flexibility, reduces bureaucracy, and fosters collaboration among providers, especially within Integrated Care Systems (ICSs). Importantly, it encourages continuity of care, value for money, and innovation.

Key Principles of the PSR:

• Transparency and accountability in selection decisions
• Proportionality in the selection process
• Non-discrimination and equal treatment of providers
• Service user involvement in decisions
• Focus on outcomes over process

To ensure consistency, the PSR outlines specific provider selection processes that commissioners must follow.

The Three Provider Selection Processes Explained

There are three primary routes through which commissioners can select healthcare providers under the NHS Provider Selection Regime:

1. Direct Award Process

This process allows commissioners to directly award contracts to providers in specific circumstances, without running a competitive tender. There are three scenarios under which this is permitted:

• Continuity of provider: Where the incumbent is delivering quality care and continued provision is in the best interest of patients.
• Only one capable provider: Where only one provider is able to deliver the service (e.g., due to geographic monopoly or specialist capability).
• Exclusivity arrangement: Where contracts are awarded under exclusive statutory duties (e.g., General Medical Services contracts).

Tip for Bidders:
Healthcare providers should maintain high-quality performance, build strong relationships with commissioners, and demonstrate value for money to remain eligible for direct awards.

2. Most Suitable Provider Process

This non-competitive process applies when commissioners want to consider more than one provider but do not require a full competition. Providers are assessed against a defined set of criteria to determine which is most suitable.

Criteria may include:

• Service quality and outcomes
• Experience and expertise
• Cost-effectiveness
• Innovation

Tip for Bidders:
Ensure your service offerings are well-documented, outcome-focused, and aligned with commissioners’ strategic goals. Consider investing in case studies and performance evidence.

3. Competitive Process

This process is similar to traditional procurement and is used when there is a need to open up the market to multiple potential suppliers. It remains essential for new or significantly changed services or where there is no incumbent provider.

Tip for Bidders:
Stay informed about tender opportunities, refine your bidding processes, and maintain an up-to-date bid library. If you’re unsure where to start, our Online Tendering System can help you find and prepare for healthcare tenders efficiently (view services).

Succeeding Under the New NHS Provider Selection Regime

To succeed under the PSR, healthcare providers must be proactive, strategic, and responsive to the changing expectations of commissioners.

Here are five actionable tips to help you adapt and thrive:

1. Maintain Service Excellence
   Ensure your service outcomes, patient feedback, and compliance data are consistently positive. Quality metrics will be pivotal in both direct and most suitable provider selections.
2. Invest in Strategic Relationships
   Engage with Integrated Care Systems (ICSs), commissioners, and healthcare networks to remain visible and involved in shaping local service delivery.
3. Be Ready to Evidence Value
   Develop comprehensive portfolios that showcase your impact, innovation, and alignment with local health priorities. Use tools like bid libraries and templates to streamline submissions (see tips on bid writing).
4. Monitor PSR Opportunities
   Use tools and consultants to track tender releases, framework updates, and commissioner strategies. Our tender tracking service makes this easy, ensuring you’re never caught off guard.
5. Consider Specialist Support
   Navigating the nuances of the PSR requires expertise. Working with experienced consultants like Tender Consultants can ensure compliance, enhance your bids, and boost your win rate.

How Tender Consultants Help Healthcare Providers Navigate PSR

At Tender Consultants, we’ve helped hundreds of healthcare organisations understand the implications of procurement reform and position themselves competitively under the new NHS Provider Selection Regime.

Our services include:

• Identifying the best-fit tenders aligned with your capabilities
• Supporting compliance with PSR guidelines
• Developing persuasive, tailored submissions
• Offering strategic insight into commissioner expectations

Whether you’re pursuing a direct award or preparing for a competitive process, we can help you win work without wasting time or resources. Explore our Online Tendering System to see how we streamline your journey.

Final Thoughts

The NHS Provider Selection Regime represents an important evolution in public healthcare procurement. For providers ready to embrace collaboration, innovation, and quality-led delivery, it offers new avenues to secure and sustain contracts.

Success under the PSR won’t depend solely on price—it will rely on your ability to demonstrate impact, meet local needs, and partner effectively with commissioners. With expert support from Tender Consultants, you can be confident in your ability to navigate this new terrain.

Further Reading and Resources:

• NHS England – Provider Selection Regime Guidance
• Bid Writing for Healthcare Contracts – Ask a Bid Writer
• More insights from Hudson Outsourcing

Need help with NHS bids?
Contact us today at Tender Consultants to learn how we can support your healthcare bidding strategy under the PSR.