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The role of the NHS Purchasing and Supply - BiP Solutions

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					The role of the NHS Purchasing
      and Supply Agency

           Neil Argyle
Associate Director of Purchasing
   - Policy and Performance
          5 December 2001
     Neil.Argyle@doh.gsi.gov.uk
Agenda


• background to the Agency

• the NHS Plan

• Agency’s Corporate Plan

• what does it mean for suppliers?
Background:
NHS Supplies

 • NHS Supplies formed 1992

 • born out of NAO criticisms – wasted purchasing muscle

 • part of NHS – special health authority

 • 3 national operating divisions:
    – Purchasing
    – Wholesaling
    – Customer services

 • all income derived from ‘customers’
NHS Supplies scale of
operation – March 2000
 • 4,500 national / ‘sub-national’ contracts with 1,400 suppliers
 • £2.5 billion influenced spend (total NHS non pay expenditure
   2001/2 = £11 billion)

 • 12 warehouses

 • 18,000 stock lines

 • £42 million average total stockholding

 • £530 million per annum stores sales
 • NHS Supplies expired 31 March 2000
Historical view of purchasing
and supply in NHS
 • focus on non-pay spend in secondary health care

 • historical ‘functional’ role
                 contracting and distribution
                 process driven and low profile
                 expertise in operational activities
                 price focused
 • unclear priorities and strategies across NHS

 • fragmented, variable practice

 NOT STRATEGIC
Cabinet Office - Procurement
Review 1998

  Overall principles:

  • working in partnership

  • instituting best practice

  • organisational change

  • ‘Procurement savings of at least 3 per cent per annum
    achievable’
Trusts


• appoint board member with specific responsibility for procurement

• take responsibility for local procurement staff

• produce a written procurement strategy

• implement electronic information management system
• wholesaler to logistics provider
• manage the supply chain
• increase influence £500 million             £1,500 million
• review potential for private finance



   manufacturers
       and
                                                        NHS
     importers
                                                      Hospitals
                   Wholesalers
                       and                             Clinics
                   Distributors                       Community
                                    NHS
                                  Logistics              GP
                                  Authority           surgeries
                                                         etc
NHS Purchasing and
Supply Agency
          • works on behalf of the NHS
          • executive agency of the Department of
            Health
          • Chief Executive reports via NHS
            Operations Director to Health Minister
          • Ministerial Advisory Board
          • centrally funded
          • framework agreement with Department
            of Health
The Agency’s objectives –
Framework Agreement with DoH
• deliver a cost-effective supply chain
• ensure strategies reflected in ministers’ policies and priorities for
  the NHS
• establish overall framework for performance management of
  procurement in the NHS
• determine/control the appropriate level at which procurement
  decisions are made
• improve efficiency and effectiveness of NHS procurement and
  supply chain
• improve skills, expertise and professionalism of NHS procurement
  staff
• increase NHS boards’ awareness of procurement issues
            The NHS Plan


www.nhs.uk/nationalplan/nhsplan.htm
• A plan for investment with sustained increases in funding . . . . . .
    – NHS to grow 50% in cash terms, 33% in real terms in 5 years
    – 7000 extra beds in hospitals and intermediate care
    – over 100 new hospitals by 2010 and 500 one-stop primary care
      centres
    – over 3000 GP premises modernised and 250 scanners
    – clean wards and better hospital food overseen by ‘modern matrons’
    – modern IT systems in every hospital and GP surgery
    – 7500 more consultants; 2,000 more GPs; 20,000 extra nurses;
      6,500 extra therapists
 NHS Plan –
 the reform agenda
• services to be redesigned around the needs of patients
• a new system of ‘earned autonomy’ with £500 million
  performance fund
• Modernisation Agency
• national standards matched by regular inspection (CHI)
• increased capacity for NICE
• NHS and social services to come together – new Care Trusts
• role changes e.g. nurses able to supply some medicines
• patient input at all levels
• concordat with private sector
NHS Plan – direct
improvement to patients
• patients to have GP appointment within 48 hours
• end of long waits in accident & emergency
• maximum waiting time for an outpatients appointment will
  be three months, and six months for inpatients
• big expansion in cancer screening programme
• end to ‘postcode lottery’
• rapid access chest pain clinics
• improving the patient environment
NHS Plan – investment
in equipment

• 50 new MRI scanners
• 200 new CT scanners
• 80 new liquid cytology units
• 45 new linear accelerators
• 3000 new automated defibrillators in public places
• 450 new and replacement haemodialysis stations
• extension of ‘patientline’ (bedside TVs and phones)
• £250 million in new IT to underpin NHS Information Strategy
NHS Plan – task forces
the ‘priorities’

•   improving access          •   mental health
•   cancer                    •   older people
•   CHD                       •   quality
•   capital and capacity      •   workforce
•   children                  •   performance
•   inequalities and public
    health
Shifting the balance of power

 http://www.doh.gov.uk/shiftingthebalance/index.htm


 • more responsibility to front line staff

 • national standards/local delivery

 • structural changes – Health Authorities, Regional
   Offices
Agency’s Corporate Plan
2001-2004 (1)
www.pasa.doh.gov.uk/publications/
• Agency will have made significant contribution to NHS Plan
• Agency will have led on NHS procurement objectives flowing from
  wider government agenda
• Agency established and recognised as centre of expertise
• all non-pay NHS expenditure will be subject to best procurement
  practice
• Agency will be influencing 80% on non-pay NHS expenditure
• at least 30% (£3.7bn) will be purchased from Agency contracts
• there will be full NHS commitment to Agency’s contracts
                                                   continued…..
Agency’s Corporate Plan
2001-2004 (2)
 • the NHS will be trading electronically
 • the NHS will be using an integrated supply chain for at
   least £1.5bn of its expenditure
 • organisational structures will be in place across the NHS
   that will eliminate fragmentation and deliver efficiency
 • all staff involved in procurement issues will have the
   required professionalism, skills and competencies
 • all procurement activity will be subjected to performance
   management to include demonstration of best VFM and
   will be regularly part of Trust Board agendas
What do the changes
mean for suppliers?

• procurement firmly on the agenda, at both national and
  local level
• more inclusive NHS procurement - joined up purchasing
  and supply
• opportunity for nurturing innovation
• emphasis on value, not just price
• a ‘once only’ approach where appropriate
• modern systems
A STRATEGIC APPROACH

				
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posted:8/6/2012
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