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On target for £150m savings by April 2016

We are on target for £150m savings by April 2016

Tuesday 9 June 2015

With cash releasing savings so far of £81m1 we are on target to deliver £150m by April 2016 working closely with our customers and suppliers.

Accelerating standardisation has been a key factor in this and has also enabled us to reduce the national catalogue from over 600,000 products just 316,000.

On average this means customers are paying 4%2 less than they were 12 months ago, with £31m of price reductions being a key factor in this.

“We had planned on bulk purchases with suppliers, but since NHS Supply Chain has reduced costs there is less requirement for bulk as savings can be achieved “picked to ward”, saving on handling and storage costs”.

Mark Slaney, Head of Procurement and Logistics
South Devon Healthcare NHS Foundation Trust


Breakdown of the £81m cash releasing savings

Net price reductions
(Price decreases vs. price increases)
Commitment discounts / rebates4
Lower cost comparable products5
Total
£31m £39.8m £9.2m £81m

Are you getting the most from these savings?

Find out what these savings mean for your organisation by accessing our suite of Trust Savings Reports

Are you getting your share of savings from our top performing categories in 20153:

See the latest savings opportunities and how we can work with you

“We recently changed over to the NHS core list wipe which has gone down very well and we made great savings too!

Good value product… more of these please.”

Nicola Quille, Project Officer
Ashford & St Peter's Hospitals NHS Foundation Trust


What next?

Contact your NHS Supply Chain Account Manager or discuss the key opportunities for your region with your local representative on the NHS Supply Chain Customer Board.

NHS Supply Chain resources available to your procurement teams:

  • Clinical nurse advisors to facilitate procurement discussions with nurses and clinicians
  • Implementation co-ordinators to support your teams in making system changes
  • Account managers to help manage procurement projects in your trusts
  • Buyers with specialist knowledge at category level to support your teams
  • eDC and eDC Gold materials management solutions for general and consignment stock
  • Asset management specialists to support your teams with management of new and existing medical equipment covering capital planning, leasing, finance options and procurement.

Did you know what £81m could fund for the NHS?

  • 2,400 band 6 nurses5
  • 535,700 outpatient attendances6
  • 740,000 A&E attendances6
  • 333,000 overnight stays in hospital7.

Footnotes

1. Cash releasing savings for the NHS between 1 April 2013 and 30 April 2015
2. 12 month rolling figure which compromises of price reductions, commitment discounts and adoption of lower cost comparable products. Of the 4% figure, price deflation makes up 1.7%.
3. Actual cash releasing savings delivered between 1 January 2015 and 30 April 2015
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.
5. Savings from trusts adopting lower cost alternative products that are clinically acceptable
6. Based on Agenda for Change payscales http://www.nhscareers.nhs.uk/working-in-the-nhs/pay-and-benefits/agenda-for-change-pay-rates/
7. Based on national prices stated in Annex 5a National Prices for A&E attendances and outpatient attendances- https://www.gov.uk/government/consultations/national-tariff-payment-system-201516-a-consultation-notice
8. Based on £225 cost per in-patient overnight stays - http://www.institute.nhs.uk/quality_and_service_improvement_tools/quality_and_service_improvement_tools/length_of_stay.htm  

Delivering value to the NHS