latest health care news

09.05.14

eProcurementStrategy will drive efficiency – DH

The Department of Health has released the NHS eProcurement strategy, with an ambition that all NHS purchase-to-pay transactions and category management activities be undertaken electronically.

The strategy comes after last autumn’s ‘Better Procurement, Better Value, Better Care’ document, which established a new Procurement Development Programme to help NHS trusts ‘stabilise’ their non-pay spending. That was aimed at ensuring trust’s spending does not rise above its current level by the end of 2015-16, which should equate to £1.5bn in procurement efficiencies.

The key parts of the new strategy are to:

  • Define standards to ensure NHS e-procurement systems work together
  • Require the adoption of standards by the NHS (GS1 coding and PEPPOL messaging standards)
  • Invest in technology solutions that will support e-procurement implementation by the NHS
  • Establish a single NHS spend analysis and price benchmarking service

The DH admitted that it “will take several years of concerted effort” across the NHS landscape, and across the NHS supplier base, to achieve this ambition, but that ultimately eProcurement is about making procurement processes faster and more efficient.

To embed these standards, the DH will centrally fund and procure the critical national infrastructure to support the strategy, which will be interoperable with existing and future local eProcurement systems so that trusts can locally select their preferred technology partners.

The strategy also drives patient safety benefits. Barcodes based on the GS1 standards can be read at any point in the healthcare supply chain so that a product subject to a safety alert can be quickly located and recalled. Providers of NHS-funded healthcare, including the independent sector, must be able to electronically track and trace individual medicines and medical devices to a specific patient.

Dr Dan Poulter MP, minster for health, said: “Previous efforts to improve eProcurement in the NHS have been patchy due to a lack of central direction. We have now mandated the use of the GS1 and PEPPOL standards by amending the NHS Standard Contract to require compliance with this NHS eProcurement strategy.

He added: “Importantly, though, there is nothing in the strategy that hasn’t already been done in part somewhere, either in the NHS, in another sector or in another country. What is new, however, is bringing all these elements together in one cohesive strategy to improve patient care through a modern, effective and efficient NHS procurement function.”

A full review of the eProcurement strategy, including thoughts from Steve Graham, lead in eProcurement at the DH, will be in the May/June 2014edition of National Health Executive.

Tell us what you think – have your say below or email [email protected]

Comments

There are no comments. Why not be the first?

Add your comment

national health executive tv

more videos >

featured articles

View all News

last word

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad, president of the Association of the British Pharmaceutical Industry (ABPI), sits down with National Health Executive as part of our Last Word Q&A series. Would you talk us throu more > more last word articles >

health service focus

View all News

comment

NHS England dementia director prescribes rugby for mental health and dementia patients

23/09/2019NHS England dementia director prescribes rugby for mental health and dementia patients

Reason to celebrate as NHS says watching rugby can be good for your mental ... more >
Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >

interviews

Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

24/10/2019Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

Today, speaking at the Royal College of General Practitioners (RCGP) annual... more >

the scalpel's daily blog

Covid-19 can signal a new deal with the public on health

28/08/2020Covid-19 can signal a new deal with the public on health

Danny Mortimer, Chief Executive, NHS Employers & Deputy Chief Executive, NHS Confederation The common enemy of coronavirus united the public side by side wi... more >
read more blog posts from 'the scalpel' >