In an urgent decision-making meeting, Harrow Council's Leader, Councillor Paul Osborn, agreed to delegate authority to officers to ensure the continuity of community equipment services following the liquidation of NRS Healthcare. This includes authorising the termination of the existing contract with NRS Healthcare, entering into new agreements with Essex Care Ltd and other providers, and delegating functions to the Integrated Community Equipment (ICE) Group or other London local authorities. The decisions were made to ensure that residents continue to receive essential health and social care support.

Community Equipment Services

Following the compulsory liquidation of NRS Healthcare, the council made several decisions to ensure the continued provision of community equipment services to residents. Around 1,500 pieces of equipment are ordered per month to support the delivery of health and social care services in Harrow, and the council has a statutory duty to meet the needs of its residents¹.

The Leader of the Council agreed to the following recommendations:

• To delegate authority to the Director of Adults and Public Health to terminate the call-off contract with NRS Healthcare if needed.
• To delegate the council's functions to the Integrated Community Equipment (ICE) Group or any other relevant London local authority to facilitate commissioning arrangements with a provider of community equipment, and/or to accept the delegation of function to another ICE Group member or other London local authority.
• To delegate authority to the Director of Adults and Public Health to enter into contract arrangements with Essex Care Ltd for the provision of community equipment services, subject to mutually agreed contract terms and commercial arrangements. Essex Care Ltd is a Local Authority Trading Company (LATCO) owned by Essex County Council.
• To delegate authority to the Director of Adults and Public Health to enter into contract arrangements with NRS Healthcare (via its appointed liquidators) or with other providers of community equipment services if required, to ensure continuity of service provision while arrangements with a principal community equipment provider are put in place.

These decisions were made due to the risk of the incumbent provider being unable to deliver a service from 1 August 2025. Councillor Paul Osborn said the decisions were needed to ensure:

continuity of care, and the flexibility to enter into new contract arrangements with providers as required in the coming days / weeks.

The council also agreed to continue with its current arrangement with NRS pending the implementation of the new solution and that officers will report back to the cabinet by the end of 2025 to provide an update on the re-commissioning of these services and the financial implications for the council.

Background

NRS Healthcare, the current community equipment provider for the London Consortium, entered compulsory liquidation on 31 July 2025. The Official Receiver appointed PwC as a special manager to manage NRS during a transition to new providers. NRS Healthcare provides services to 21 councils in the London Consortium, as well as another 21 councils across the UK.

Harrow Council commissions community equipment services on behalf of the NHS locally. The combined spend on equipment services in Harrow is around £2.9 million per year, shared with the North West London Integrated Care Board (NWL ICB) on a 45% (council) and 55% (ICB) basis.

In the short term, the council has reached an agreement with Accora Ltd for support with a small number of equipment items, such as beds, seats, mattresses, hoists, slings, commodes and slide sheets.

Risk Management

The report outlined several risks associated with the transition to new arrangements, including the risk of the council being left without a community equipment provider and the potential for a gap in provision. Mitigations include negotiations with Essex Care, identification of alternative providers, and engagement with prescribers and NHS trusts to prepare for potential disruption.

Procurement and Legal Implications

Procurement fully supports the recommendations outlined in the report and will ensure full compliance with the council's Contract Procedure Rules, the Public Contract Regulations 2015² (where applicable), and the Procurement Act 2023³. The council may use Schedule 5 (13) of the Procurement Act 2023 to justify a Direct Award under the Urgency provision before entering into any contractual agreements.

The council has a statutory duty under the Care Act 2014⁴ to provide community equipment services. The report requests delegated officers to negotiate contract arrangements for the service and make a direct award of contract in adherence to the law.