PRESS RELEASE
22nd November 2010
The NHS CPC is growing success in NHS Procurement
It is easy to focus on the negatives of the cuts in public sector funding, indeed for many
organisations the future is bleak, but for one of the former regional procurement organisation
the futures bright, even if it‟s a challenge.
The level of uncertainty within the NHS system has already destabilised some organisations.
In some cases, even those not already on the endangered list, have announced that they
can no longer sustain a viable operational or business model.
NHS Procurement Hubs are typical of these types of unstable organisations. They are reliant
on other NHS bodies to continue funding them and therefore keeping them in existence. So
what is the future for NHS collaborative procurement, does it have one at all?
Commercial Director at the NHS CPC Brendan Fatchett thinks so: “The normal business
model for collaborative NHS Procurement leaves organisations vulnerable to the announced
changes, with many of their members either set to disappear or assessing whether
membership tariffs offer good value for money. It is true that several of the former regional
procurement hubs have already closed, or have announced their imminent closure, however
the NHS CPC is working against the tide and is not just maintaining its position, it is growing
against all the odds.
The NHS CPC was formerly responsible for offering collaborative procurement frameworks
and contracts to the Yorkshire and Humber region. Having anticipated a radically changing
NHS environment we adopted a forward thinking approach seeking to develop an
operational model which would offer the strength in depth and breadth not only to weather
the storm, but potentially emerge stronger as the waters settle in a more commercial NHS.
Bucking the trend of other NHS procurement organisations the NHS CPC is going from
strength to strength and in the last few months has signed up five NHS organisations in the
East of England region as members. This means we have increased the leverage that we
can bring to bear on suppliers to the NHS. On top of the organisations already benefitting
from NHS CPC contracts in the East of England we are building relationships with a number
of NHS organisations right across the country who are attracted by the evidence of the
savings we are making for our existing members on everything from infusion pumps to
property rates.
In the last week City Healthcare Partnerships, the first NHS organisation to become a social
enterprise, have also signed up to become a member. If we can repeat this level of sign up
elsewhere it looks like a very positive future for the NHS CPC.
The Chief Executives at some of the other procurement organisations have been quick to
write off collaborative procurement organisations, warning that the NHS will „leak‟ cash
without the right expertise. If left completely to their own devices there is no doubt that some
organisations will not get value for money and will find going it alone on procurement has its
pitfalls. Some organisations, with the right staff, will be successful.
However I believe it is too early to announce the end of NHS collaborative procurement. The
NHS CPC has ambitious plans to grow, enrolling new members and in turn delivering even
greater savings for the Trusts who recognise the benefit of purchasing together, despite the
increasingly competitive nature of the NHS.”
Brendan Fatchett
Commercial Director
NHS CPC
NOTES TO EDITORS:
1. For more information or to arrange an interview about NHS procurement and NHS CPC
please call Ian Coward on 0114 226 4479, ian.coward@yhcpc.nhs.uk
2. The NHS CPC was formed in 2007 with an ambitious target of delivering over £26m of
benefits to the NHS in the Yorkshire and Humber region in the first three years, a figure they
exceeded, they continue to work to deliver benefits to NHS organisations across the country.
By working to meet the procurement needs of individual organisations the CPC can bring
improvements via collective purchasing and aggregation of spend. The CPC is the Yorkshire
and Humber region‟s centre of procurement excellence, based around a strong professional
procurement team with experience, knowledge and competency built in both the private and
public sectors.
As well as core procurement, tendering and bidding services NHS CPC provides a range of
additional benefits to members, these include:
marketing and communications
consultancy
training
engagement and innovation support
eCommerce and information management
tendering advice and guidance
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