Will procurement bodies meet long-term savings targets?
NHS Business Services Authority and NHS Supply Chain have reported meeting a £300m savings target five months ahead of plan.
The target, achieved in April, was set by the Department of Health and Social Care as part of Lord Carter’s review of procurement in the NHS. Under the Carter initiative 1, it is estimated that £700m could be saved through improved procurement practices.
NHS Supply Chain said key elements for making the savings were:
- price reductions
- savings programmes: the nationally contracted products (NCP) programme, which NHS Supply Chain operates on behalf of NHS Improvement, and the compare and save programme
- commitment discounts: retrospective rebates resulting from purchasing commitment from a specific supplier
Head of supplier management at the NHS Business Services Authority Gerry McGeary said: ‘We are currently transitioning into the new NHS Supply Chain operating model which aims to deliver savings of £2.4bn over the next five years.’
NHS Supply Chain says it manages the sourcing, delivery and supply of healthcare products and food for more than 1,000 NHS Trusts and healthcare organisations. It provides a single point of access to more than 316,000 lines. The product areas include:
- catering, including food
- infection control
- capital equipment, including finance and maintenance
Gov.uk: Productivity in NHS hospitals
(The Carter review)
NHS Supply Chain: £300 million cash-releasing savings target achieved
NHS Supply Chain: Future operating model