Issue - meetings

Update on Community Health and Social Care Contract

Meeting: 26/05/2022 - Cabinet (Item 8)

8 HCRG Care Group Options Appraisal pdf icon PDF 712 KB

The Cabinet is asked to consider all the benefits and disbenefits along with the associated risks highlighted in the report to inform the contract extension decision.

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Additional documents:

Minutes:

Cllr Vic Pritchard made a statement in his capacity as Chair of the Adults, Children, Health and Wellbeing PDS Panel.  The statement covered the following issues:

 

·  The role of scrutiny is very important in this process.  Having discussed this matter at the Adult, Children, Health and Wellbeing PDS Panel no firm conclusion had been reached.  There was a balance of views from Panel members between Options 1 and 3.

·  Cllr Pritchard gave a brief outline of the background to the Virgin Care contract and highlighted the importance of this decision.

·  He praised the excellent service that had been provided by Virgin Care and HCRG throughout the pandemic.

 

The Chair clarified that the Cabinet had decided to ask the PDS Panel to consider the HCRG contract options appraisal.  He also noted that the statement presented by Cllr Pritchard appeared to be made in his capacity as Leader of the Conservative Group rather than as the Chair of the PDS Panel.

 

Cllr Alison Born, Cabinet Member for Adult Services and Council House Building, introduced the report and made the following statement:

 

“This Special Cabinet meeting has been called to determine the future of the community health and care services contract. These services were provided by Sirona, a local Community Interest Company until 2017 when a seven plus three-year contract was jointly awarded to Virgin Care by B&NES CCG and Council. The first seven-year period of the contract comes to an end in March 2024 and Commissioners were required to decide whether or not to exercise the three-year extension by March 2022.

 

An options appraisal process took place during 2021 and in November, both the CCG and the Council took the decision to exercise the three-year extension. This decision was based on the fact that services provided by Virgin Care were generally good, they were seen as a trusted partner, and it was felt that the extension would offer certainty and continuity at a time of great stress and upheaval across the health and care system.

 

However, within three weeks of this decision being made, Commissioners were informed that Virgin Care had been sold to a private equity group Twenty:20 capital and was being re-branded as HCRG. This was totally unexpected as the Commissioners had been given no prior indication that Virgin Care was for sale. It brought the decision regarding the contract extension into question. HCRG were informed that the extension would be placed on hold whilst commissioners initiated a due diligence process and obtained legal advice. In February 2022, HCRG agreed to an extension of the deadline for exercising the option until the end of June 2022.

 

A further Option Appraisal has been undertaken, taking into account the change of ownership and the circumstances for that change. Four options were considered and two have been discounted, the two that remain are:

 

Option 1 – To extend for a further three years

 

Option 3 – To allow the contract to end with no extension beyond 31 March 2024

 

There are advantages  ...  view the full minutes text for item 8

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