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Guy’s and St. Thomas’ NHS Foundation Trust achieves over £213,000 in recurrent savings through prompt settlement discount scheme

Guy's and St Thomas' NHS Foundation Trust make savings with the Prompt Settlement Scheme

Guy’s and St. Thomas’ NHSFT achieved over £213,000 savings in 12 months through the prompt settlement discount scheme

Monday 11 January 2016

Guy’s and St. Thomas’ is one of the busiest and most successful foundation trusts in the country with over two million patient attendances each year through a wide range of services. Like many other organisations, it has to achieve the increasingly difficult balance of meeting the needs of high quality care in a way that is financially sustainable.

Challenge

In meeting this challenge, the Trust has to deliver efficiencies of 2-3% equating to between £60-70m savings per year, whilst maintaining high quality care for patients. A significant proportion of this target has to come from Trust procurement with one of their recent initiatives being a partnership with NHS Supply Chain, designed to accelerate savings through the channel.

Solution

The partnership has been based on joint savings targets, underpinned by dedicated resource from NHS Supply Chain and onsite support from the Trust procurement team.

In order for the partnership to gain confidence with their stakeholders across the Trust, they needed early successes. This is why they decided to look at a prompt settlement discount (PSD) scheme that could deliver a 1% saving on all the Trust’s £22m spend with NHS Supply Chain.

The main consideration for the Trust finance team was ensuring that the accounts payable files could move quickly enough so that funds would be in NHS Supply Chain’s bank account within the three working days required to achieve the 1% saving.

“As the invoices are received from NHS Supply Chain in a single file, there is no reason in principle why that file can’t be processed in three days because you haven’t got multiple invoices that are subject to price and receipt check”

David Lawson
Chief Procurement Officer
Guy’s and St. Thomas’ Hospitals NHS Foundation Trust

Key Outcomes

  • £213,746 savings in the last 12 months
  • Scheme supported the Trust finance team in meeting their early payment objectives
  • As a result of the early success, there was more support for NHS Supply Chain within the Trust, leading to improved stakeholder buy-in on other procurement projects.

“Once the saving % was agreed the annual £200,000 benefit was sufficient reason for everyone to buy in to the new process. Since implementation, every invoice has been paid within three days, it really is that straightforward.”

Peter Evans
Finance Process Improvement Manager
Guy’s and St. Thomas’ Hospitals NHS FT

Further Information

For more information on the prompt settlement discount scheme, contact your local NHS Supply Chain Account Manager.

View the case study to find out how they implemented the scheme and the main learnings so far.

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