News / Review calls for faster procurement savings

By Seamus Ward

The Department of Health has delayed the publication of a new procurement strategy for the NHS and launched a review to find ideas that will speed up delivery of procurement savings.

The strategy, which was originally due in April but is now to be published later this year, will set out how the NHS in England can achieve the £1.2bn savings planned as part of the procurement workstream.

The procurement review will inform the strategy. In a letter calling for evidence, review chair Sir Ian Carruthers said: ‘Whilst some improvements in NHS procurement are evident, the pace of change is not sufficient to

meet the financial challenge that is facing the NHS.’

‘We need more innovative procurement processes and more widespread procurement of innovation,’ continued Sir Ian. ‘By harnessing relationships with suppliers, the NHS can adopt existing innovations and stimulate new innovation to deliver quality and value, for both NHS patients and taxpayers.’

As well as launching the review, the Department published procurement guidance and standards. Together they represented a ‘first step’ to more efficient procurement, it said.

The guidance, NHS procurement: raising our game, said action should focus on six areas, including applying the standards; leadership, clinical engagement and reducing variation; and levers for change.

In the last category, the guidance said the NHS Commissioning Board was considering how to encourage trusts to focus on procurement, including possibly using CQUIN (commissioning for quality and innovation) payments.

‘We know at least £1.2bn could be saved over the next four years if the NHS innovatively changes the way it buys goods and services,’ said health minister Simon Burns.

He announced the Department, working with NHS Supply Chain, had established a £300m fund to bulk-buy large equipment, such as MRI and CT scanners. He said £11m has already been saved through orders that have been placed in advance with suppliers via NHS Supply Chain.

Andy Brown, NHS Supply Chain managing director of business solutions, added: ‘This important development will allow NHS Supply Chain to group together the purchasing power of the NHS for this vital equipment, make large commitments to suppliers and bring improved planning to the management and replacement of this equipment across the NHS and with suppliers.’