Delivering efficiencies in your STP

Across the country, STP leads have been asked to develop proposals to consolidate corporate, back office and support services, initially on a regional basis, but with the intention to consolidate across larger areas over time.

Capital and funding

Your options appraisal should also take into account different options for capital funding. This is important given the constraints on NHS capital budgets. This could be through non-government sources or a PPP arrangement. If capital funding is important to your plan, using a separate vehicle may be attactive.


You will need to consider the extent to which EU procurement rules will apply to the provision of any particular services between the joint venture partners. In some cases, the position is that a contract for services will be subject to the procurement rules. However, there are some helpful exemptions to the procurement rules. Consortia made up of only NHS bodies can structure their joint venture to meet the exemptions to the Public Contracts Regulations 2015 and accordingly avoid the necessity of a full EU procurement. However where a particular arrangement includes the involvement of a private sector partner careful considerations needs to be given to whether the exemptions apply to the particular arrangement.