Hi Pausing Flatly and Just5mins
The EU Directive is EU 2014/24 which is implemented in E and W by the Public Contracts Regulations 2015. See regulations 74 to 76 The regulations pretty much copy out what is in the directive.
Regulations 74-76 require that, where a clinical services contract value is over the £600k odd threshold, CCGs (the people who commission clinical health services) must advertise the contract in the Official Journal of the EU and that a competitive process is held with certain procedural guarantees. It means that for the first time CCGs can no longer simply award a contract directly without competition to an NHS Provider.
That said it is fair to say that the Health and Social Care Act 2012 (or rather, the regulations made under it) did put the onus on commissioners to consider competition. So you can't say that the move towards encouraging competition is entirely EU driven, because our own governments have been encouraging it for years. And even before the Health and Social Care Act, when there was no obligation to advertise health services at all, many NHS Trusts (who were the commissioners of services at the time before commissioners moved over to the CCGs) did use to advertise on a voluntary basis in any event, as this was a good way of achieving transparency and vfm.
That said, since 18 April this year is the first time that a competitive process MUST be held for over threshold clinical services contracts, and that is entirely due to the EU Directive.
The Directive gave each member state several options around how it implemented this requirement (eg a member state could choose to be more or less prescriptive about how the competition for these services was to be run) but significantly there was no option to choose not to implement the core requirement that these contracts must be (a) advertised and (b) a competitive tender process of some kind run for them.
The result is that if a CCG awards a health service contract that is over the £600k odd threshold directly with no competition, it is in breach of the Public Contracts Regulations 2015 and the EU Directive. As a result it could easily face legal challenge in the High Court and, where the breach was a failure to advertise the opportunity, the Courts can declare the contract "ineffective" - i.e. overturn it. As you can imagine this would cause no end of hassle and liability to the CCG not to mention problems for service continuity.
There are cases in the courts right now where a provider NHS Trust is suing a CCG, which has awarded a health services contract to a private provider.
Hope this is helpful. I can pm you some further reading if you like.