4. Statement by the Minister for Health and Social Services: The Health Service Procurement (Wales) Bill

Part of the debate – in the Senedd at 3:49 pm on 14 February 2023.

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Photo of Baroness Mair Eluned Morgan Baroness Mair Eluned Morgan Labour 3:49, 14 February 2023

Diolch yn fawr, Dirprwy Lywydd. I'm pleased to have the opportunity to make a statement on the Health Service Procurement (Wales) Bill, which I introduced to the Senedd yesterday, together with the accompanying explanatory memorandum and regulatory impact assessment.

The Bill seeks to reform the way in which certain NHS healthcare services are procured in Wales, bringing forward primary legislative powers and enabling the Welsh Ministers to create a new regime for NHS health service procurement. The powers within the Bill support the aims and objectives of our 'A Healthier Wales' strategy and this Government's commitment to provide effective, high-quality and sustainable health care, by supporting the NHS in Wales to deliver better health outcomes for the citizens of Wales.

The provisions in the Bill are partly in response to proposed changes established as a result of the UK Government's Health and Care Act 2022, under which there are plans to introduce regulations and a new regime for the procurement of NHS health services in England. The Department of Health and Social Care's provider selection regime, applicable only to the procurement of health services in England, will aim to improve patient outcomes by seeking to remove unnecessary bureaucracy from the process of working with independent healthcare providers, by encouraging collaboration and partnerships.

The provider selection regime will therefore give NHS England more flexibility to procure and arrange health services. As a consequence, these new arrangements may have an impact on NHS Wales's ability to maintain and secure health services in Wales when working with independent providers. To ensure that health service procurement in Wales is not disadvantaged as a result of introducing the provider selection regime in England, we too need to ensure that the NHS in Wales also has the ability to benefit from more flexible procurement practices.

The provisions in the Bill and the future regulations will facilitate that flexibility, providing a supportive mechanism that aims to maintain the current procurement level playing field for NHS health services between England and Wales. This will assist in mitigating the risk of NHS Wales being adversely affected by the operation of a different health service procurement regime in England. It will retain the ability for the NHS in Wales to commission independent health service providers on a co-compliant and collaborative basis, in turn supporting and optimising financial and staff resources, supporting the NHS in Wales to deliver efficiently and effectively.

Measures in the Bill will also aim to mitigate any potential market distortion by ensuring that the Welsh health service marketplace remains attractive to independent health service providers who may otherwise be deterred by having to participate in two different procurement regimes between England and Wales. It is hoped that a more flexible, collaborative and less bureaucratic approach will open up more supplier opportunities for small and medium-sized enterprises and third sector organisations based here in Wales and, therefore, as a consequence, bring economic benefits across other programme for government priorities, such as our commitment to the foundational economy of Wales.