Presentation is loading. Please wait.

Presentation is loading. Please wait.

Lord Hunt President of the Health Care Supply Association The NHS Procurement Landscape.

Similar presentations

Presentation on theme: "Lord Hunt President of the Health Care Supply Association The NHS Procurement Landscape."— Presentation transcript:

1 Lord Hunt President of the Health Care Supply Association The NHS Procurement Landscape

2 Agenda Introduction The NHS Commercial Environment The Procurement Landscape The Optimal Route to the NHS Market

3 Introduction Lord Hunt background Career review Current role and view of procurement Health Care Supply Association

4 The NHS Commercial Environment The NHS is in constant state of change........ Necessity Not Nicety / Commercial Skills for the NHS –Commercial Support Units –Demise of PaSA –Formation of PICD and SMDU Liberating the NHS –Demise of PCTs and SHAs –Greater accountability for GP Consortia (now Clinical Commissioning Groups) FT Network / Other Providers and the competition agenda –Foundation Trusts competing to provide services QIPP agenda driving £20b savings –£1.2b from procurement ……. but how do these changes affect the supply market?

5 The NHS Commercial Environment Pre White PaperInterim PositionPost White Paper Department of Health Department of Health (?) National Commissioning Board SHAs Regional Commissioning Organisations Commercial Support Units Collaborative Procurement Hubs (CPH)CPH / Collaborative Commercial Organisations Collaborative Commercial Organisations Regional Specialised Commissioning Groups PCTsPCT ClustersGP Support Organisations Trusts (NHS/FT) Trusts (FT) GPsGP ConsortiaClinical Commissioning Groups Private Healthcare ….. but do we understand the role of each organisation??

6 The Procurement Landscape NHS procurement leadership and strategy appears uncoordinated?..... National Strategy – Procurement, Investment and Commercial Division – Shared Business Services (CPS) / NHS SC / OGC Buying Solutions subsumed into Government Procurement – The QIPP Agenda and the role of the SHAs – National Procurement Council – National commercial organisations (regional) – Public and Private Regional Strategy – SHA’s morphing into something new – Commercial Support Units (Commissioning / Provider Services) – Commissioning Support Units – Public / Private Local Strategy – Acute NHS and Foundation Trusts / GP Consortia …..there is little linkage across the players

7 The Challenges for Buyers Information –Lack of transparency of price paid –No single place for “rich” data on products and markets Communication –Use of value measurement i.e. innovation vs the need for cash releasing savings –Clinical engagement with decision making –Various routes of communicating with supply market Business process –Inefficiency caused by framework contracts –Difficult to operate collaboratively without bureaucracy –Delivery to support Trust strategic professional voice

8 The Challenges for Suppliers Information –Weak information and market intelligence –Slow uptake of new products and innovation –Clinical evaluation inconsistent Communication –Time and cost to take a new product to market –Limited performance & improvement feedback Business process –Multiple routes to markets – confusion –Prescribed supply routes may not be optimum –GPO / Intermediary business models –Access to decision makers …..what is the optimum for suppliers

9 NAO / PAC Summary NHS Acute and FTs in England spend over £4.6billion Each Trust controls its own purchasing, in line with the Government’s strategy Trusts can purchase consumables in various ways Foundation Trusts act independently and will choose how it collaborates – DH acknowledges that it is accountable for NHS procurement across the system, but it has no control over the actions of the individual trusts who could deliver improvements Fragmented system of procurement has produced a great deal of waste, with trusts being charged different prices for the same goods A lack of quality data - bar-coding of products would help trusts to rationalise the range of products they buy and compare prices, providing the data they need to benchmark their performance.

10 NAO / PAC Conclusions and Demands 1.There is a need for clarity from the Department about how it will deliver the necessary improvements in procurement by NHS hospitals when trusts are independent of its control. 2.It is not clear how trusts will be motivated to deliver collectively the £1.2 billion savings required from procurement under the Quality, Innovation, Productivity and Prevention (QIPP) programme. 3.Information on what products trusts buy and the prices they pay is poor. 4.NHS Supply Chain is not demonstrating its value to the NHS. 5.Regional purchasing structures are confused and lack transparency 6.There is a risk that, faced with the need to make savings, trusts will not identify procurement savings and will instead cut elsewhere.

11 The Optimal Route to the NHS Market What is the most effective route for suppliers to sell to the NHS? What drives the organisations involved? National –NHS SC –OGC Buying Solutions –SBS (CPS) Regional –Developing Commercial Organisations –“Old” Hubs Local (Direct) –400 Trusts – 200 Acutes / 150 PCTs / 30 Mental Health / 20 Others –Potential GP Consortia now Clinical Commissioning Groups …do you sell on price or value? …how much capacity do you have?

12 Is Your Strategy Aligned to the NHS? The £20b challenge and the QIPP Agenda Support and investment locally Tri partite relationship – clinician / buyer / supplier Transparent benefit to all parties Strategy Meeting between ABHI and HCSA on 19 th July HCSA National Conference in Manchester 2 nd /3 rd Nov “NHS Procurement “Where Next?”

13 Lord Hunt President of the Health Care Supply Association The NHS Procurement Landscape

Download ppt "Lord Hunt President of the Health Care Supply Association The NHS Procurement Landscape."

Similar presentations

Ads by Google