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NHS Supply Chain launches new leasing contract

Tuesday 6 April 2010

  • Leasing offers NHS trusts a cost effective way to fund new medical equipment to improve patient care and outcomes
  • Updated leasing contract applauded by National Leasing Association

In a tough financial environment where capital budgets are constrained, NHS Supply Chain’s new leasing contract launched today offers NHS trusts access to finance to fund new medical equipment.

“Leasing can often be the most sensible choice within the NHS to finance medical equipment as technological advances often outpace the life of the equipment.” says Andy Brown, Managing Director of Diagnostics at NHS Supply Chain.

“NHS trusts are able to procure the most up-to-date medical equipment without any initial capital outlay. Trusts also have peace of mind that they can upgrade to a newer model, should the need arise, without incurring major capital investment.”
Andy adds, “We are helping to drive best practice on leasing and lease management and our process ensures full compliance to EU procurement regulations. Our process saves NHS trusts time and money that otherwise would have been spent through tendering and ensures a competitive market for lease providers.”

Through the new contract, 20 companies will be able to provide their leasing services to the NHS. Trusts will be able to compare and contrast deals to ensure that they find the most cost effective solution to meet their needs.*

The contract offers full cost transparency and complete administrative support from NHS Supply Chain’s specialist team, who complete all procurement mini-competitions and the necessary paperwork for trusts. The contract can be used to fund all types of equipment ranging from complex projects to basic equipment.

Ken Ashford, Supplies and Distribution Manager at East Cheshire NHS Trust tells of his experience, “NHS Supply Chain’s easily accessible contract provides sound advice, with guaranteed legal compliance, in a sharp time scale which adds up to an excellent service.”

Louise Hamilton, Chair of the Finance and Leasing Association's Healthcare Group says “Much of the equipment used to deliver healthcare services could be owned more efficiently by the private sector, saving capital outlay as well as operating cost. Introducing new technology using leasing could also facilitate efficiency improvements, without needing structural reorganisations. NHS Supply Chain has an important role to play in helping trusts with the leasing procurement process.”

The leasing contract forms part of NHS Supply Chain’s wider capital equipment solution that helps NHS trusts prepare for the future. The capital planning service covers the purchasing/leasing of equipment as well as its maintenance and ultimate disposal.


Photograph of Andy Brown

Notes to editors

Leasing contract highlights

  • No lump sum or capital investment needed
  • Typically no disposal or inspection costs at the end of the lease term
  • Better pricing deals comparing from twenty lessors
  • Used for assets worth over £10,000
  • Simple upgrades and replacements available throughout life of contract
  • Assets financed over a fixed period for easier budget planning

* The appointed lessors are: Air Products Plc; Asset Advantage Limited; Barclays Asset Finance; Cisco Capital; Cranmer Lawrence & Company Limited; CSI Leasing UK Limited; De Lage Landen; ECS United Kingdom Plc; GE Healthcare Financial Services; HFGL Limited; HP Financial Services; Investec Asset Finance Plc; Lloyds TSB Corporate Asset Finance; Lombard; Santander Asset Finance; SG Equipment Finance Limited; Siemens Financial Services Limited; Singers Healthcare Finance Limited; Solutions Asset Finance Limited and Summit Asset Management.

For more information please contact:
Andrew Brentnall on 01773 724196 or at

About NHS Supply Chain
NHS Supply Chain is a government contract operated by DHL since 2006. It supports the National Health Service (NHS) and other healthcare organisations in England and Wales by providing end to end supply chain solutions.

The organisation was formed from the NHS Logistics Authority and parts of the NHS Purchasing and Supply Agency (NHS PASA). It is operated by DHL on behalf of the NHS Business Services Authority and aims to provide over £1 billion of savings to the NHS by 2016.

The NHS Supply Chain contract manages the sourcing, delivery and supply of healthcare products and food for over 1,000 NHS trusts and healthcare organisations. It provides a single point of access to over 500,000 products ranging from bandages to sutures, from gloves to implants, and even diagnostic equipment such as MRI scanners.

Its management of the procurement process negates an NHS organisation’s need to tender through the Official Journal of the European Union (OJEU). Costs can also be reduced through its one-route solution that consolidates all products onto one invoice and delivery – this saves up to £1 per product in back office administration costs and removes up to 60 deliveries going into a trust compared with ordering goods separately.

To ensure that its products are fit for today’s healthcare market, NHS Supply Chain works with suppliers of all sizes to ensure its range embraces high quality and innovative products; and engages with clinicians, the Department of Health and academic institutions to make sure that it is aware of the current requirements and latest developments in clinical practice.
NHS Supply Chain’s product areas include:

  • theatres
  • dental
  • audiology
  • catering, including food
  • infection control
  • orthopaedics
  • rehabilitation
  • capital equipment, including finance and maintenance.

Based in Alfreton, Derbyshire, UK, the business employs around 2,400 staff in eight locations.

Delivering value to the NHS