£250m cash-releasing savings achieved for the NHS

Published: 1-Nov-2017

£158m cost-avoidance savings achieved on capital medical equipment purchases

NHS Business Services Authority and NHS Supply Chain have announced that as of the end of September this year they achieved over £250m cash-releasing savings which should assist NHS trusts in maximising their procurement budgets.

These savings have been delivered against the £300m target set for September 2018 by the Department of Health.

Gerry McGeary, head of supplier management at NHS Business Services Authority, said: “Our Trusted Customer programme, which serves as the voice of the customer, ensures that NHS Supply Chain’s procurement strategy has contributed to the delivery of these significant savings.

“We seek to encourage more joint working between all stakeholders in order to deliver the full £300m cash-releasing savings target by the end of September 2018.”

David Pierpoint, chief operating officer at NHS Supply Chain, added: “This is a great achievement and it’s only by working in collaboration with our customers and suppliers on our savings programmes such as the Nationally Contracted Products (NCP) programme, High-Cost Tariff-Excluded Devices (HCTED) and Compare and Save that it’s been possible to make these savings.”

In addition, the NHS Supply Chain capital solutions team has achieved the overall target set by the Department of Health of £158m cost-avoidance savings ahead of its due date of September 2018. This achievement has benefitted many NHS trusts who have purchased capital medical equipment through NHS Supply Chain.

Jason Lavery, director NHS Supply Chain capital solutions, explained: “The key driver for these savings is the better utilisation of the Department of Health Capital Equipment Fund.

“Through working collaboratively with local and regional customer groups, we have been able to aggregate and leverage national demand within NHS capital medical equipment.

“The fund has also provided the opportunity to commit bulk orders to suppliers of radiotherapy equipment as part of the national £130m replacement plan to support the treatment of cancer.”

Lord Carter of Coles’ report for the Department of Health, Operational Productivity and Performance in English NHS Acute Hospitals: Unwarranted Variations, published in February 2016, estimated that £700m could be saved through better procurement activities.

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