Poor NHS Procurement Processes Preventing Savings

Jul 02, 2014

Poor data sharing processes mean NHS Trusts are paying over the odds for goods and services and losing a potential of £1bn savings, claims global consultancy Ernst and Young (EY).

EY, along with healthcare marketplace Peto, recently published figures that demonstrate that Trusts across the country have adopted “poor” procurement processes.

The consultancy recommends healthcare organisations improve their data sharing, ensuring information reaches the entire NHS in order to prevent taxpayers paying an unnecessary £500m a year.

“Our analysis raises serious concerns about price variation and spending in the procurement of NHS supplies,” claimed Joe Stringer, partner at EY.

“At the root of this problem lies the lack of transparency in the market, leaving Trusts unable to make cost-efficient decisions about purchasing supplies,” he added.  

Because there is a lack transparency across NHS organisations, EY claims that Trusts are unable to compare prices, quality and value of goods and services.

NHS “Sabotaging” Own Savings Goals

“Given the NHS’s £20bn efficiency drive to cut waste, an obvious place to make savings without compromising patient care is by changing the NHS buys products and services, costing the public £18bn a year,” claimed Peto’s managing director Julian Trent.

“Through the simple introduction of price transparency between NHS suppliers, this figure can be reduced by £500m. Price visibility will reduce costs and generate an opportunity for product suppliers and the NHS alike to deliver maximum value for the public purse,” Trent added.

The government is currently driving improved transparency and openness, as well as a transformed procurement model, but it seems these changes have yet to fully reach the healthcare sector.

The EY and Peto research has been released ahead of a scheduled government review of the NHS Procurement Strategy.

© 24N.biz 

Comment

 

Understanding the risks and rewards of public sector cloud 

Download the Whitepaper now

Partner

Partners

24Newswire

Sign up to receive latest news