Issue - meetings

Bath & North East Somerset Council and Bath and North East Somerset, Swindon and Wiltshire Clinical Commissioning Group, as joint commissioners entered into a contract with Virgin Care Services Limited for the delivery of a range of health and social care services with effect from 1 April 2017. The Contract is in the sixth year (2022/23) of the initial seven year term with an option for the Commissioners to extend the initial term by three years, taking the full extended term contract term to 2026/2027.

The final decision on whether to extend the contract or not will be made at the Council’s Cabinet meeting and CCG Governing body meeting on 26th May 2022.

The Director of Adult Social Care introduced this report to the Panel and gave an outline of the timeline that had taken place so far.

·  The Commissioners each took a decision on 11 November 2021 (through the Council’s Cabinet and the CCG’s Governing Body) to approve exercising Option 3 to extend the contract term for the three-year period until 31 March 2027.

·  On 1 December 2021, the Virgin Care Services Limited notified the Commissioners that the business it formed a part of had been sold to T20 Pioneer Holdings Limited which is in turn ultimately held by Twenty20 Capital Limited (via another company) (T20). T20 is a private equity investor.

·  The change took effect from 30 November 2021 with the formal change of control notice referred to above. The change in ownership is several steps removed from the Provider with intermediate companies being retained but names changed. The Provider is now known as HCRG Care Services Ltd. The Provider has stated that it “has no intention or proposal to make a consequential change to its operations”.

·  Following the announcement on 1st December 2021, the Commissioners paused formal confirmation and notification of the extension decision until the Council and CCG had undertaken a full due diligence review of the change in control and understand its legal implications.

·  The Commissioners instructed BDO LLP (BDO), to undertake due diligence on T20 and the implications of the acquisition of the Provider for the Contract, the Commissioners, and the delivery of services.

·  On 8 March 2022, it was agreed to defer the notification of the contract extension decision deadline until 30th June 2022 (subject to CCG and HCRG Care Group mutual agreement) and for a new options appraisal to be undertaken which will allow for discussion of other extension options with supporting rationale for each.

·  On 4 April 2022, BDO facilitated an Options Appraisal Workshop in order to gather views and opinions from Commissioner representatives as part of the options appraisal process of the Contract based on the following four options:

o  Option 1 – Extend the Contract term for the 3 year period (until 2026/27)

o  Option 2 – Extend for an alternative period

o  Option 3 – Allow contract to end with no Contract extension beyond 31 March 2024

o  Option 4 –Termination of the Contract before 31 March 2024

Paula Riseborough said that it was difficult for her to add to her previous statement as the Options Appraisal report itself has been classified as exempt.

Councillor Joanna Wright asked for an explanation of the legal advice that the Council had received on this matter.

The Director of Adult Social Care replied that she was not able to share that information in the public domain. She added that the decision to hold an exempt session is not to protect the commercial aspects of HCRG but to safeguard the future decision that the Council and CCG make.

Councillor Wright asked if the decision regarding the contract was primarily about the Council obtaining best  ...  view the full minutes text for item 12