28.04.14
NHS procurement list expected to save £500m – DH
A new central procurement list for the NHS where hundreds of everyday hospital supplies will be bought in bulk could help save £500m, the Department of Health (DH) has stated.
It is expected that the NHS Core List will drive out “variation” and secure “better prices” with suppliers.
Currently, hospitals negotiate prices individually and as a result cannot always secure the best price for products. For example, the NHS spends £25m on sterile surgeon’s gloves, with one brand the dominant market leader. The DH says it knows that if Trusts moved to an alternative brand they could save up to 38% on the prices they currently pay.
Speaking on the BBC’s Andrew Marr Show, health secretary Jeremy Hunt said: “Hospitals pay too much for some of the basic products and services. That drives them mad.
“So we’re announcing a big new scheme to improve NHS procurement, a central list so that we can use the bulk-buying power the NHS has.”
In order to ensure the Central List works, the DH added it is working with the NHS Trust Development Authority to ensure all NHS Trusts will use the list and are developing incentive schemes with Monitor to encourage Foundation Trusts to do the same.
Additionally, a “procurement Tsar” will be appointed by the government to produce the procurement list and drive this work forward. The target is for the NHS to save over £500m by the end of the next financial year.
On top of this action, the DH stated that its new IT strategy will mean all supplies have global barcodes, like supermarket produce, which will cut out the need for costly human invoicing and avoid late supply orders. It also means a step forward for patient safety, as faulty equipment can be tracked and recalled.
The Department has also updated the standard set of terms & conditions for NHS contracts. “This will reduce the amount hospitals have to pay for legal contract advice and is the first step towards the NHS acting as a single customer,” a spokesman told NHE. “We have committed to make savings of £1.5bn to £2bn on procurement by the end of 2015-16. We expect this NHS Core List to make up £500m – or roughly a third - of these overall savings.”
Tell us what you think – have your say below or email [email protected]