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26.10.17

NHS ahead of schedule for procurement savings

NHS trusts as a whole have made over £250m of savings up to September 2017 through changes in procurement.

The DH set a September 2018 target of £300m for NHS Business Services Authority and NHS Supply Chain in order to free up more money for trusts, an aim that looks set to be beaten comfortably by organisations.

In addition, the Capital Solutions Team has already achieved its target of £158m in cost avoidance savings almost a year earlier than the savings were due.

In 2016, the Lord Carter report for the Department of Health, ‘Operational Productivity and Performance in English NHS Acute Hospitals’, estimated that £700 million could be saved through better procurement activities. Subsequently the 2018 targets were set in order to increase efficiency within NHS strategies.

Gerry McGeary, head of supplier management, NHS Business Services Authority said: “I would like to thank everyone who has contributed to the huge task of delivering these savings.

“Our Trusted Customer programme, which serves as the voice of the customer, ensures that NHS Supply Chain’s procurement strategy has contributed to the delivery of these significant savings.

“We seek to encourage more joint working between all stakeholders in order to deliver the full £300 million cash-releasing savings target by the end of September 2018.”

Supply Chain’s COO, David Pierpoint, called the savings a “great achievement” and thanked the organisation’s dedicated programmes for contributing to the work.

Top image: ljubaphoto

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