News / High-cost device procurement system set to improve value

The devices, which are typically specialist and used in a small number of providers, are currently paid for separately from the tariff under pass-through arrangements. However, the planning guidance for 2016/17, published in December, announced that a national system would be established.

NHS England said it currently spends £500m a year reimbursing specialist units for the devices. These are paid at cost, but there are wide variations in the prices paid by trusts and the rates of use across the country.

The deal, agreed with the NHS Business Services Authority and operated by NHS Supply Chain, would generate savings through economies of scale and reducing price variation.

The new system includes bespoke orthopaedic prostheses; carotid, iliac and renal stents; and peripheral vascular stents. However, it does not appear to include all the devices in the 2016/17 national tariff high-cost devices list.

NHS Supply Chain will provide support to each trust currently purchasing high-cost devices to ensure a smooth migration to the new arrangements by the end of 2016, NHS England said. The system is due to operate until September 2018, when it is expected that new NHS-wide procurement arrangements will be in place.

NHS England director of specialised commissioning Jonathan Fielden said: ‘By bearing down on price and quality variation and making the most of our national purchasing power, NHS England will now be able to deliver these same high-cost devices for less, freeing up funding to help meet the increasing demands on specialised services from new and effective treatments.’

 NHS Supply Chain has announced that it has reached its target of delivering £150m in cash-releasing savings for the health service by 31 March this year. According to Supply Chain, it had reached the target through collaborative working, product standardisation and rationalisation. The organisation added that it would continue to work in this way to deliver the next £150m of savings to achieve the overall target of £300m by September 2018.

Read more on 'Building block'  in our features section