URL: https://councillors.knowsley.gov.uk/ieDecisionDetails.aspx?ID=7983

Decision Maker: Executive Director Health & Social Care (Sarah Smith)

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: Following an increase in the Real Living Wage from 1 April 2025, this report seeks approval that the specialist nursing care fee rates with Delphside Ltd are increased as detailed in appendix 2 from 2 February 2026, to support the continued sustainability of the service.   The report also seeks to make a one-off payment of an amount equal to what they would have been paid if the specialist nursing care fee rates had increased from 1 April 2025.   This modification is permitted under The Health Care Services (Provider Selection Regime) Regulations 2023, Regulation 13(1)(a).     13. (1) Subject to paragraph (3), a contract or framework agreement for relevant health care services may be modified during its term without following a new procurement process under these Regulations only where—   (a)  the modification is clearly and unambiguously provided for in the contract or framework agreement documents,   This provision applies to any health services contracts even if they were originally awarded outside of the Provider Selection Regime (PSR), as is the case in this instance.  PSR allows for greater flexibility in procurement processes whilst still providing for transparency and proportionality.  Section 12 of the existing contract clearly and unambiguously provides for this proposed modification.  

Content: Following an increase in the Real Living Wage from 1 April 2025, this report seeks approval that the specialist nursing care fee rates with Delphside Ltd are increased as detailed in appendix 2 from 2 February 2026, to support the continued sustainability of the service.   The report also seeks to make a one-off payment of an amount equal to what they would have been paid if the specialist nursing care fee rates had increased from 1 April 2025.   This modification is permitted under The Health Care Services (Provider Selection Regime) Regulations 2023, Regulation 13(1)(a).     13. (1) Subject to paragraph (3), a contract or framework agreement for relevant health care services may be modified during its term without following a new procurement process under these Regulations only where—   (a)  the modification is clearly and unambiguously provided for in the contract or framework agreement documents,   This provision applies to any health services contracts even if they were originally awarded outside of the Provider Selection Regime (PSR), as is the case in this instance.  PSR allows for greater flexibility in procurement processes whilst still providing for transparency and proportionality.  Section 12 of the existing contract clearly and unambiguously provides for this proposed modification.   (i)       That, in accordance with The Health Care Services (Provider Selection Regime) Regulations 2023, Regulation 13(1)(a), the contract with Delphside Ltd for the provision of specialist nursing care be modified by increasing the fee rates, as provided for within the existing contract at section 12, as detailed in Appendix 2 to the report from 2 February 2026 to 31 March 2026;   (ii)       That a separate one-off payment be made to Delphside Ltd of an amount equal to what they would have been paid if the specialist nursing care fee rates agreed in (i) had been increased from 1 April 2025, which is when the provider started to incur the additional costs, and;   (iii)      That the Procurement Team be authorised to issue the relevant contract modification documentation   Do Nothing (Freeze Rates) This would have retained fee rates at 2024/25 levels.  This was rejected as analysis of the providers costs identified that this is not sufficient to sustain the service due to inflationary increase in costs across the service and exceptional increases in Employers National Insurance contribution and the Real Living Wage from 1 April 2025.   Pay the 7.53% increase in line with the standard rates The provider rejected an increase of 7.53% so commissioners undertook an open book accounting exercise. The open book accounting exercise identified that an increase of 7.53% was insufficient to sustain the service due to cost pressures unique to this [specialist] care home.  

Date of Decision: January 23, 2026