Agreements between Trust and local authorities
Agreements between Trust and local authorities
Mr Sands’ evidence exhibited the following sample agreements in respect of the three services in issue that were entered into between the Staffordshire and Stoke on Trent Partnership NHS (“SSOTP”) (one of the trusts which was merged with the other to form the Trust) following the tender process undertaken by the relevant local authority:
Health visiting: an agreement between SSOTP and the Council of the City of Stoke-on-Trent (1 April 2017);
Sexual health: an agreement between SSOTP and Staffordshire County Council (1 April 2016); and
IPC: an executed agreement between SSOTP and Cheshire East Council (1 April 2016).
They are all lengthy documents, described as contracts, containing multiple annexes and appendices incorporating, in the case of health visiting and sexual health, reference to schedules of further particular and general conditions adapted from NHS template documents.
Each agreement specifies the relevant services, payment (amount and timing), and agreement duration as summarised below:
Health visiting services:
the provider is required to deliver (clause 4.1) “a progressive universal health visiting service delivering public elements of the HCP (the Healthy Child Programme) to all children 0-5 years and families in Stoke-on-Trent.” At a minimum, it is expected the service will carry out an ante-natal visit and further visits at specified ages of the child.
the total payment amount is £13.65 million (excluding VAT) with a duration of 3 years which the local authority could extend for an additional one or two years. Clause B8 “Charges and Payment” states “…in consideration for the provision of the Services in accordance with the terms of this Contract, the Authority shall pay the Provider the Charges”. The agreement provides for monthly invoicing, with payment within 10 business days of invoice receipt.
Sexual Health:
the services to be provided encompass the full range of sexual health services (including testing and treatment of STIs, contraception and advice to be offered to those individuals requesting and/ or requiring specialist advice, screening and treatment in relation to their sexual health/contraception).
the payment specified for each 12 month period was £1,773,936. The duration is 3 years extendable by 1 year by the local authorities. Payments are to be made monthly.
IPC services:
the services to be provided include infection control training, infection trend monitoring, data collection, specialist tuberculosis nurse provision and development of an infection control audits.
the payment amount is £166,202 per year for 2 years, with possible extensions for further successive 12 month periods. The agreement for monthly invoicing in arrears, payable by the local authority 30 days from invoice receipt.
Both parties made submissions on various aspects of the contracts, including on the attractiveness of certain terms to private operators, or their ability to comply with such terms as compared with NHS bodies. Mr Sands’ evidence covered similar points, including pointing out the predominance of NHS bodies as service providers, albeit mentioning some examples of private operators in other areas. Mr Sands’ evidence also covered the following broad themes, namely that (1) the Trust was not performing the relevant services for profit (2). The health visiting and sexual health services were statutory services which had to be provided and could not “not be provided, or go out of business” (3) the Trust’s financial record was one of running mainly at a deficit (4) the wider health impacts of providing the specified health services to the public and (5) the current trend was towards arrangements under s75 of the 2006 Act agreements involving a more collaborative approach and no tender. We address these points in further detail as appropriate in our discussion of the relevant issues.
- Heading
- Introduction
- legal background to claim
- Issues and remedy sought
- Background NHS framework evidence and facts
- NHS health legislation
- Local authorities
- NHS foundation trusts
- Agreements between Trust and local authorities
- Issues
- Issue 1: whether provision of services was “for consideration” under Article 2 PVD
- Parties’ submissions in summary
- Discussion: Issue 1 – is the Trust’s supply of services to the local authority “for consideration?
- Public duty and public funding
- Issue 2: is the supply “economic activity” under Article 9 PVD?
- Discussion on Issue 2: whether economic activity
- Public duty and public funding
- Comparison with how activity typically carried out in market
- Issue 3: Engaging in the supplies of the services as a public authority - special legal regime
- Article 13 PVD- Application to the facts
- NHS legislation
- Consultation obligations and guidance
- Power to make directions in emergency – s253 of the 2006 Act
- NHS Constitution and Trust constitution
- Other legislation
- Case that the Trust is a delegate of a local authority
- Issue 4: Leading to significant distortions of competition
- Conclusions
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