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£18m saved for the NHS on clinical supplies

NHS Supply Chain saves the NHS £18m on clinical supplies

£18m cash releasing savings could be the equivalent of over 600 band 6 nurses6.

Wednesday 25 June 2014

Working closely with our customers and suppliers, together we have delivered the NHS £18m in cash-releasing savings to support the Cabinet Office, Department of Health and NHS Business Services Authority’s £2bn savings target for NHS procurement. In delivering these savings, we have seen the monthly run rate increase 66% in the first five months of 2014, compared to the last five months of 2013.

The table below demonstrates how the savings have been achieved.

Table 1: Breakdown of the savings

Net price movement2 Compare and Save3 Trust commitment discounts and rebates4 Total
£2.17m £4.8m £11.2m £18.1m 1

1 Period for savings calculation: 1 April 2013 to 31 May 2014
2 Net effect of price increases and decreases for identical products
3 “Compare and saves” are savings from alternative products which are directly comparable.
4 “Trust commitment discounts” refers to savings generated following a commitment by a Trust to purchase a specified volume or value of products during a specified period of time. The savings figure stated takes into account only those savings which have been realised to date.

To find out what the savings mean for your trust, visit our new Savings Reports.

Your Trust Savings Reports will also explain how the savings have been calculated and which of NHS Supply Chain's trading portfolios5 they relate to. Don't forget, you will need to be logged in to view your reports.

Find out more about our Savings Reports

5 There are multiple framework agreements within each portfolio.

6 Source: Band 6 nurse average salary, Payrates, 2013/14

Further Information

To find out how you can save with NHS Supply Chain, contact your local NHS Supply Chain Account Manager.

Have you made savings on NHS procurement? Join the discussion on Twitter #SpendLessDeliverMore

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