UK NHS Announces Procurement Development Programme to Cut Costs

August 7, 2013 – 1:53 pm

The UK NHS has published a new procurement development programme aimed to cut wasteful spending. The three-year strategy could reduce revenue for some of NHS’ suppliers. Orthopaedic suppliers especially are targeted in the programme due to the high “cost to serve” (the consignment stock, instrumentation and sales support staff), according to the report.

The plan focuses on changing the way the NHS does business and buys supplies, and aims to save the NHS £1.5 billion. These are some of the most notable changes related to medical supplies:

  • The agency will recruit a procurement champion to change procurement practices across NHS.
  • Hospitals will be required to publish the rates they pay for goods and services. A price index will be created where hospitals can compare how much they spend compared with other hospitals.
  • The Department of Health will work with top NHS suppliers to get bulk deals for cutting-edge medical equipment like radiotherapy machines and MRI scanners.
  •  To expose bad contracts, NHS wants more data on how local NHS institutions sign deals.
  •  The report specifically mentions gloves and sutures as two areas where significant savings can easily be made by changing suppliers.

 

The report, Procurement development programme for the NHS, is available on the NHS website.

By: Camilla Andersson

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  1. One Response to “UK NHS Announces Procurement Development Programme to Cut Costs”

  2. The Goverment are past masters at reinventing the wheel!

    The NHS Supplychain was supposed to bring state of the art procurement to the NHS but in reality has proven to be a disaster and has lead to price inflation.

    This has lead to the creation of procurement hubs which has further confused matters and allowed manufacturers to manipulate prices between trusts.

    By Ivor Jones on Aug 8, 2013

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