Harrow Council is scrambling to secure a new community equipment provider after NRS Healthcare, the company previously contracted to supply essential equipment like hospital beds, pressure relieving mattresses, hoists, slings, and commodes, entered compulsory liquidation.

In an urgent decision-making meeting on Thursday, 7 August 2025, the council delegated authority to officers to manage the fallout and ensure the continued provision of vital services to residents. This includes exploring contracts with Essex Care Limited and other providers to fill the gap left by NRS Healthcare's collapse. Harrow is collaborating with seven other local authorities in these negotiations.

NRS Healthcare, which operated under the London Community Equipment Consortium, went into compulsory liquidation on Friday, 31 July. While the meeting information confirms the liquidation date, it does not specify the reasons behind it. PwC is currently managing the company as special managers under the direction of the official receiver.

Councillor Paul Osborn, Leader of the Council, outlined the council's immediate priorities:

  • Discussions with PwC regarding the continuation of NRS Healthcare's business, aiming to ensure vulnerable residents receive uninterrupted access to essential equipment during this transition period. An agreement has also been reached with Accora Ltd for short term support with a small number of equipment items (beds, seats, mattresses, hoists, slings, commodes and slide sheets).
  • Negotiations with Essex Care Limited, an arms-length trading company of Essex County Council, to potentially become the new service provider. The timing of any arrangement with Essex Care is not yet known, as negotiations are ongoing regarding the contract and service specifications. Key milestones include agreeing on a contract, service specification, and commercial terms.
  • Discussions with other providers to establish contingency services, as a decline in service from NRS Healthcare is already being observed. An agreement has already been reached with Cora Care for larger equipment items such as hospital beds and hoists.

The approved recommendations grant the directors of adults and public health the authority to:

  • Terminate the agreement with NRS Healthcare if necessary.
  • Negotiate a contract with Essex Care Limited, or any other relevant London local authority, to provide community equipment services.
  • Enter into contract arrangements with NRS Healthcare or any other community equipment service provider as required to ensure continuity of service provision.

The report identifies the risk of the council being left without a community equipment provider and unable to meet its statutory duties. Mitigations include negotiations with Essex Care, identifying alternative providers to deliver a contingency service, and working with the London Community Equipment Consortium. Another risk is a gap in provision during the transition, which is being mitigated by contingency plans with alternative providers and engagement with prescribers and NHS trusts.

A legal clarification was made regarding delegating authority to the Integrated Community Equipment (ICE). It was confirmed that authority would be delegated to another relevant London local authority, rather than the consortium itself, as the consortium lacks legal entity status. Councillor Osborn clarified that Kensington and Chelsea Council, as the consortium lead, has established a community equipment framework, and Harrow utilizes a call-off contract to contract directly with NRS Healthcare.

The financial arrangements to support NRS through their transitional period are unclear. Support is dependent on agreeing suitable commercial terms to cover costs and ensuring payment of NRS historical debts. How this will be done, and whether any cost will be borne by local authorities is being considered currently. There is opposition to any costs being paid by councils given that the debts are NRS's. However, there is a balance to be struck between the cost of supporting the transition and the wider costs (financial and social) of not having a functioning community equipment service. The community equipment spend is currently funded through a mixture of service revenue budget and funding from the Disabled Facilities Grant (DFG). It is expected that the service, where possible, will maintain expenditure within current projections, although it is likely that short-term mobilisation, contract, and differentials of individual items costs will to be incurred.

The council is acting quickly to minimise disruption to community equipment services, which provide essential support to residents in need. The Public reports pack Thursday 07-Aug-2025 10.00 Portfolio Holder Decision Meeting provides further details on the decision.