DoH outline Framework for “world-class” NHS Procurement

DoH outline Framework for “world-class” NHS Procurement

Department of Health (DoH) report has revealed that the NHS is paying over the odds due to a lack of collaboration, and that a new procurement framework will be installed as a result.

The report addresses procurement by NHS Trusts, and for the first time accurately breaks down the £20.6 billion expenditure into the following areas:

  • Approximately half is spent on medical supplies and services, including drugs

  • £300 million is spent on outsourced medical care

  • £2.7 billion is spent on agency staff and consultants

  • £3.3 billion is premises related

  • £2.3 billion is spent on non-medical supplies and services

It is thought that inadequate procurement is to blame, and there is a reluctance to standardise clinical products. Additionally, many trusts have only limited procurement capability and capacity, and the procurement staff may have insufficient authority.

The ambitious programme is intended to deliver cost reductions of £1.5 billion by 2015-16, and to install a framework for “world-class procurement”. Longer-term improvement will be monitored by a "procurement development oversight board", chaired by a minister for procurement, and a delivery board to be chaired by a "procurement champion" from the private sector. Additionally, procurement networks will be developed at regional and trust level, and the NHS will invest heavily in a centre for procurement development.

Original Source EHI

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