NHS Supply Chain needs to make “substantial improvements” to customer satisfaction so the health service can make better use of its spending power, a new report from the National Audit Office (NAO) has concluded.
NHS trusts spend approximately £3.4bn outside NHS Supply Chain, with estimates showing the health service spends around £8bn a year on products.
While they are free to purchase good independently, in order to achieve savings targets, NHS Supply Chain must convince trusts to use it for procurement.
During 2022/23, for example, some trusts paid up to £490 for each hip replacement stem part – the same product was available through NHS Supply Chain for £258.
Gareth Davies, the head of the NAO, said: “Delivering the right products for the NHS, on time and at the best available price is essential to make every pound count for patients.
“The NHS has enormous buying power, but it is not yet making the most of it.”
NHS Supply Chain’s most recent customer satisfaction survey also revealed that more than seven in 10 (71.8%) customers said they used alternative supply routes because the products they wanted were not available through the NHS.
NHS Supply Chain satisfaction levels are below target and in long-term decline, according to the NAO.
“[NHS] Supply Chain needs to do more to deliver, and to show that it is delivering, for the NHS,” said Davies.
“In response, trusts need to make use of the NHS’s buying power to secure the lower costs Supply Chain can bring, with support and clear direction from NHSE.”
Some of the mistrust of NHS Supply Chain comes from how they reported their savings targets. The NAO says the organisation used different methods for different audiences.
When the Department of Health and Social Care (DHSC) established NHS Supply Chain in 2019, it set a £2.4bn savings target to be achieved by 2023/24.
Even though NHS Supply Chain reported exceeding the goal, neither NHS England or the DHSC has validated these savings, according to the NAO.
A new methodology to report savings was devised by NHS Supply Chain last summer in collaboration with NHS England and NHS trusts, with launch expected for this April.
Ultimately, the NAO recommends that NHSE uses its data on trust spending to better understand and challenge why they are not using NHS Supply Chain.
Meanwhile, NHS Supply Chain should improve its understanding of why some customers are not satisfied and develop a plan to improve.
The NAO highlights the performance of eDirect as a place of potential improvement. Orders via this route, totalling around £1.5bn in 2022/23, were delivered on average 22 days late between June 2022 and March 2023.
A statement in response to the NAO report said: “NHS Supply Chain is committed to realising its full potential to deliver greater savings and efficiencies alongside a broader value proposition focussing on supply chain resilience, product safety, enabling access to innovation, social value, sustainability and ethical considerations.”
It continued: “Our new target operating model went live on 1 August 2023 and is designed to better meet the needs and expectations of the NHS and deliver greater efficiencies and value for our stakeholders. It supports our vision to make it easier to put patients first and our strategy to buy smart, supply right and partner expertly.”
NHS Supply Chain is now working towards a savings target of £1bn from January 2022 to 2030, and £500m by 2026.
Image credit: iStock
