Howe breaks up mental health contract as Priory acquires again

Under secretary of state for health Earl Howe has ordered NHS North West to break up a four-year framework contract between the region’s specialised commissioning group and mental health service providers. The move follows a Cooperation and Competition Panel (CCP) ruling that found the North West Specialised Commissioning Group (NWSCG) in breach of the CCP’s Principles and Rules for tendering (HMN December 2010) following a complaint by independent provider Hanover Healthcare. The CCP said that the use of four-year exclusive framework agreements for secure mental health services – which excludes new entrants – constituted the breach. Hanover, which operated a psychiatric hospital in Widnes, submitted the complaint following the hospital’s exclusion from tenders based on the fact that it is a new entrant.