Provider Selection Regime Annual Summary 2025

The Provider Selection Regime (PSR) came into force on 1 January 2024. It sets out the approach that NHS bodies and local authorities, including Birmingham City Council, must follow when arranging healthcare services.

The PSR replaces previous procurement rules for these services. Its aim is to make the commissioning process more flexible, proportionate, and responsive to local needs, while ensuring that decisions are transparent and accountable.

The Regime provides a focus on the importance of:

• Quality of services
• Continuity of care for service users
• Collaboration and integration between providers
• Reducing health inequalities and improving access
• Social value and community benefit

How Providers are Selected

Under the PSR, authorities can choose providers using one of five processes:

1. Direct award A: Existing provider is the only capable provider
2. Direct award B: People have a choice of providers, and the number of providers is not restricted by the authority.
3. Direct award C: The existing provider is satisfying the existing contract and will likely satisfy the proposed new contract which is not changing considerably.
4. Most suitable provider process: The authority makes a judgement on which provider is most suitable based on consideration of the key criteria; and awards without competitive tender.
5. Competitive process: Where the authority cannot use any of the other processes or wishes to run a competitive exercise.

Transparency and accountability

Although the PSR allows greater flexibility, it also requires openness. Birmingham City Council publishes:

• Transparency notices explaining decisions such as direct awards.
• Contract award notices confirming which providers have been appointed.

These notices are available via the UK Government’s Central Digital Platform (CDP), ensuring that the public and stakeholders can see how decisions are made.

Annual summary

In line with Regulation 25 of the Health Care Services (Provider Selection Regime) Regulations 2023, Birmingham City Council publishes an annual summary of contracting activity carried out under the PSR.

This summary relates to the period of 1st January 2025 to 31st March 2025