"The subject of improving efficiency and reducing costs through better procurement strategies rarely appears on a board agenda.”
ANDY MULLINS, HEALTH CONSULTING, PA CONSULTING GROUP
PA’s Andy Mullins, head of health, has been quoted in Supply Management. Andy gives his views on the proposed changes to procurement in the NHS.
In the article, Andy points out that the NHS buys around £17 billion worth of goods and services each year, around 30 per cent of the total budget of an NHS trust. On this point Andy comments: “Yet in our experience, the subject of improving efficiency and reducing costs through better procurement strategies rarely appears on a board agenda.
“Only around one third of all non-pay expenditure in the NHS is managed through a purchase order. This scary statistic suggests that trust boards have little control over the rest at a time when they are all under immense pressure to make savings. In the new world of empowerment and local decision making, the Department of Health cannot instruct hospital trusts to improve their procurement practices – or indeed insist they all use the same supply chain to save them money. Their challenge will be to drive the issue high up the agenda of trust boards by providing the evidence about what can be done to save taxpayer money through more effective procurement practice.”
You can read the article in full here.