Rotherham trust saves £800k a year through improved orthopaedic procurement
Review of purchasing and improved contracts brings 23% reduction in annual spend
A large-scale review into orthopaedics procurement at The Rotherham NHS Foundation Trust (TRFT) has led to savings of more than £800,000 a year.
The 23% cost reduction came after a thorough investigation by the trust’s procurement team into how products were traditionally sourced, procured purchased and managed within the division.
Working closely with the clinical director and the orthopaedics department, the team has made savings by building strategic relationships with suppliers to leverage spend, benchmarking prices against national frameworks and improving stock management.
With budgets being reduced, and a greater demand on patient services, NHS trusts are being asked to deliver services which meet increasing performance targets, but for less money
The work is part of a wider programme of procurement cost reduction carried out in conjunction with procurement consultancy, Inverto.
Steph Holmes, head of procurement at the trust, explained: “With budgets being reduced, and a greater demand on patient services, NHS trusts are being asked to deliver services which meet increasing performance targets, but for less money.
“The success with orthopaedic procurement is one example where we have been able to implement best practice in procurement and I’m confident that the savings we have made are sustainable.”
Ian Carmichael, clinical director and consultant orthopaedic surgeon, added: “The joint team has exploited its collective clinical and commercial knowledge to unlock significant savings. The number of suppliers and items has been reduced and my team now has a clear picture of the costs of the products they routinely use and, through the engagement with surgeons, why certain procurement decisions have been made. This makes implementation of the changes that are required manageable while improving clinical outcomes.”
The number of suppliers and items has been reduced and my team now has a clear picture of the costs of the products they routinely use and, through the engagement with surgeons, why certain procurement decisions have been made
And Richard McIntosh, UK managing director of Inverto, said this approach will now be transferred to other specialities within the trust telling BBH: “It was clear that in discussions with key stakeholders there was a limited understanding of the impact the way products were being selected and sourced was having on the cost per procedure. Working in partnership with the clinical lead and surgical teams will mean sustainable benefits in the long term.”
And Matthew Lowry, chief operations officer at TRFT, added: “The trust needs to make best use of its resources in this difficult period for the health sector as a whole. By adopting a total cost approach to our expenditure in the orthopaedic area the team has delivered an excellent saving which can be re-invested. This example of joint working is a powerful model the trust will use again to ensure it secures value for money in all areas of spend.”
