NHS University Trust identifies a further £3.1m from ‘less targeted’ spend areas
One of the largest NHS Foundation Trusts in England, has identified £3.1 million of additional savings by focusing on the “next wave” of procurement cost reduction. With a well-developed Cost Improvement Programme (CIP) already in place, the Trust identified savings from the “less targeted” non-pay spend areas.
Uncovering the less targeted areas
Drawing on deep NHS procurement expertise from Procura, the Trust underwent the following process to uncover saving opportunities in the less targets areas:
- A Comprehensive Spend Analysis to categorise all non-pay spend
- Analysis and assessment of the current CIP programme to understand areas which had already delivered savings
- Review of existing contracts and sourcing programme
- Engagement with stakeholders to understand context and future business requirements
- Expert assessment of areas for next waves of procurement cost reduction
Results from the project so far
From a total non-pay spend of over £275m, the initial spend analysis identified an addressable spend of approximately £220m.
Following Carter initiatives and a number of years of CIP savings delivery programmes, there had already been a strong focus on medical and surgical categories and consumables.
Further to the spend areas already included in the procurement CIP, the project identified 7 high-opportunity focus projects, with a total annual spend of £91.8m.
- Agency Staffing,
- Large Contract Review
- Alternative to NHS Supply Chain
- Purchased Healthcare Services
- Services from NHS Bodies
- Utilities and Equipment Maintenance
A programme of “deep dive” procurement cost reduction targeted the next wave of savings of £3.1m. Also recommended was that the Trust considered collaborative Procurement Collaboration opportunities within the STP footprint.