What health sector contract redistribution means for providers

Executive Compass, a bid and tender writing specialist, examines what the redistribution of health sector spend means in practice, and how providers can position themselves with a clear, effective bidding strategy.

Matthew Walker (c) Executive Compass

Matthew Walker (c) Executive Compass

UK public sector procurement spending reached £434bn in 2024/25, a rise of £19bn on the previous year. The largest increase was in the health sector, with Treasury budgets indicating a further 13% rise in 2025/26.

For health and social care providers, from domiciliary care and supported living organisations to patient transport and SEND assessment services, the figures suggest a sustained period of contract activity is on the horizon.

However, a surge in procurement spending doesn't automatically translate into accessible opportunities for all providers.

More spending does not mean easier access

Since The Procurement Act 2023 was introduced, the tendering environment has become more transparent and competitive, with clearer award criteria, greater scrutiny of supplier performance and stronger consequences for those who fail to deliver.

‘The growth in health sector procurement is a real opportunity for providers, but the process remains rigorous,' said Matthew Walker, managing director at Executive Compass.

‘Contracts in this space carry complex quality requirements, tightly defined KPIs and increasing social value weighting. Providers who underestimate the evaluation process are unlikely to be successful, regardless of the strength of their delivery model.'

When it comes to winning health sector tenders, it's less about offering the lowest price. Focusing on the quality element of a submission carries more weight in the final scores. This includes areas such as previous experience, how a contract will be managed day to day and how performance will be measured and reported.

Understanding how contracts are being distributed

Under the Procurement Act 2023, contracting authorities are increasingly reserving certain contracts for local or regional providers, particularly in health and social care. This is intended to boost local economies, improve supply chain resilience and enhance responsiveness in contracts where service continuity and prompt delivery are important.

‘Localisation is becoming a more prominent feature of health sector procurement,' says Walker. ‘Providers should check eligibility criteria carefully before committing to a submission and those with a genuine local presence should be making that central to their bid narrative.'

Monitoring upcoming opportunities through government portals such as Find a Tender or Contracts Finder while engaging in pre-market engagement activity where available, will help providers understand demand and position themselves early.

Making the most of the opportunity

Many providers have strong delivery capability but fail to translate this into high-scoring submissions.

‘Providers are often unsuccessful not because they lack expertise, but because their submissions do not clearly evidence it against the evaluation criteria,' says Walker.

‘Structured, well-articulated responses aligned to scoring criteria can significantly improve outcomes, particularly where quality weighting is high and requirements are detailed.'

With health sector procurement forecast to continue growing, providers that approach tendering as a strategic, structured process rather than an administrative exercise will be best placed to secure opportunities.

 

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