Business & Commercial Skills – Case Studies
Case Study: Contract Management and Provider Development for PCTs
We are piloting with a couple of PCT members a new approach to management of the PCT’s providers. This draws on commercial experience to understand how procurement relationships work through the close working of partnership organisations to the more transactional relationships of shorter term contracts.
The approach will help to assess the relationships that the PCT currently has with its suppliers, and provide a gap analysis of the relationships that the PCT will need to have with various providers in order to achieve its strategic goals.
The assessment looks at relationships, expected behaviours, tasks to make the relationship work and different types of commercial and NHS organisation that the PCT may contract services from.
The revised relationship between the organisations is then a wider relationship, based not just on the contract, but the wider relationships needed to make the local health economy function effectively.
Where performance does not meet the requirements of the commissioner, then a “performance escalator” is used to provide stronger incentives for the provider to jointly revise and agree a specification for the service in order to raise performance, or to provide a service specification suitable for tender if the performance of the provider does not improve.
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