NHS Supply Chain saves £250m towards 2018 target of £300m

The NHS Business Services Authority and NHS Supply Chain say they have made £250 million in savings against the £300m target set for September 2018 by the Department of Health.

Gerry McGeary, head of supplier management at the NHS Business Services Authority, said: “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 to deliver the full £300 million cash-releasing savings target by the end of September 2018.”

In addition, the NHS Supply Chain Capital Solutions Team has achieved the overall target set by the Department of Health of £158 million cost avoidance savings ahead of its due date of September 2018.

Jason Lavery, director of NHS Supply Chain Capital Solutions, said: “The key driver for these savings is the better utilisation of the Department of Health Capital Equipment Fund. Through working collaboratively with local and regional customer groups, we have been able to aggregate and leverage national demand within NHS capital medical equipment. The Fund has also provided the opportunity to commit bulk orders to suppliers of radiotherapy equipment as part of the national £130m replacement plan to support the treatment of cancer”.

Lord Carter of Coles’ 2016 report for the Department of Health, “Operational Productivity and Performance in English NHS Acute Hospitals: Unwarranted Variations” estimated that £700 million could be saved through better procurement activities.

The NHS Business Services Authority and NHS Supply Chain say these savings targets in line with Lord Carter’s vision.