Wragge & Co advises on first competitive acquisition of an NHS Trust

Wragge & Co LLP has completed a ground-breaking healthcare sector first. A cross-firm team of sector-focused specialists advised the East of England Strategic Health Authority (EESHA) on the transfer of an NHS Trust via a competitive procurement process.

In a landmark transaction, South Essex Partnership NHS Foundation Trust (SEPT) acquired Bedfordshire & Luton Mental Health and Social Care Partnership Trust (BLPT). The project involved the first major use of the Department of Health's Transaction Manual and consultation with both Monitor and the Co-operation and Competition Panel.

Partner David Hamlett and associate Rhian Vandrill led the team, supported by employment experts Andrew Hodge and Charlotte White, regulation partner John Cooper and antitrust partner Simon Taylor. Pensions associate Jenny Lewis and property partner Lee McBride also assisted. The team worked closely with Hugh Marshall and Liz Bradley at Deloitte, the commercial advisers to EESHA.

David Hamlett said: "This is completely new territory for the public healthcare sector. There was no precedent legal documentation and EESHA was tasked with securing a preferred bidder within six months. As a valued adviser to the authority, our in-depth knowledge of its objectives and sector-focused approach ensured we overcame these challenges and achieved a successful outcome."

Strategic projects director Andrew MacPherson said: "Wragge & Co's healthcare experts brought innovative and collaborative ideas to the procurement process. The team's sector expertise and first-rate legal advice was integral in making the project happen. Preparing ground-breaking legal documentation from scratch, they performed at an exceptional level and were a genuine pleasure to work with."

EESHA works with 40 local NHS organisations across Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk. It is responsible for ensuring that the £8.1 billion spent on healthcare in the region delivers the best services and value-for-money for more than 5.6 million people.

BLPT provides a variety of mental health services, learning disabilities services and social care to a population of approximately 600,000 in Bedfordshire and Luton. Jeremy Roper at Beachcroft LLP advised SEPT.

Andrew MacPherson added: "BLPT was struggling to achieve foundation trust status by its December 2009 deadline; this sector-first transaction is an innovative solution."

Wragge & Co's full-service 70-strong healthcare practice is at the forefront of developments in this dynamic sector. The team draws on its substantial private sector experience from a broad range of industries to offer NHS clients commercially-sound advice.

Sector 'firsts' also include playing a leading role in the Government's Independent Sector Treatment Centre (ISTC) programme and advising Central Surrey Health; a not-for-profit organisation owned and managed by the nurses and therapists who work for it. Other highlights include acting for the Health Authorities of Abu Dhabi and Bahrain on hospital and outsourcing projects. Also, helping Guy's and St Thomas' Hospital and Serco launch a £250 million, 10-year joint venture aimed at overhauling NHS pathology services.

Noted individuals include partners Bleddyn Rees, who spent four years as general counsel to the Commercial Directorate of the Department of Health (DH) and David Hamlett, who led a team advising the DH and more than 120 trusts on the innovative ISTC programme. Partner Andrew Hodge developed a retention of employment model which allowed the ISTC programme to proceed without NHS staff transferring to the private sector.