2015 Report details for project: NHS Procurement Efficiency Programme

Project name: NHS Procurement Efficiency Programme - there are 2 reports for this project: 2015, 2016
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Organisation: DOH (D12) - see all reports for this organisation
Report year: 2015 (data is from Sept 2014)
Category: Transformation - see all reports for this category
Description: The NHS spends over £23 billion every year on goods and services (which typically accounts for around 30 per cent of the operating costs of each NHS Trust) and around £44bn on staff. In the financial year 2011-12 and in 2012-13, non-pay expenditure in Trusts increased beyond the rate of general inflation. In August 2013, DH published a report “Better Procurement, Better Value, Better Care“, which proposed, amongst other things, that a Programme should be established to help NHS trusts deliver £1.5bn efficiency savings. The NHS Procurement Efficiency Programme received Phase 1 funding to obtain resources to mobilise the Programme in December 2013, and further interim funding arrangements to maintain Programme progress, were agreed with HMT 15th August 2014. The Programme aims to: • deliver a series of cost saving initiatives with the NHS in the short-medium term; • improve data, information and transparency within the NHS; • establish a clinically led approach to medical devices that will deliver opportunities for efficiency and establish a best practice approach to strategically managing these categories across the country; and • provide leadership, coordination and direction to help modernise procurement in the NHS, embedding world class procurement to increase efficiencies, capability and capacity across the NHS. In June 2014, Lord Carter was appointed by the Secretary of State for Health as Chairman of the Procurement & Efficiency Board. He recommended that a Project should be established to identify hospital efficiency metrics that might help NHS Trusts to identify possible efficiency savings. In parallel, work is continuing on identifying and securing savings through partner organisations such as NHS Supply Chain and Crown Commercial Services.
DCA (RAG): Amber/Red
DCA text: The MPA RAG rating was Amber/Red at Q2 2014. The RAG status of Amber-Red reasonably reflects the Programme’s steady progress over the period since the publication of the “Better Procurement, Better Value, Better Care” report and the first year of the Programme's operation.
Start date: 2013-09-01
End date: 2016-03-31
Schedule text: Savings of £307.8 million have been achieved by the Programme at September 2014. It is worth noting that the Programme is currently scheduled to complete its work by the end of March 2016. However, if the innovative work on metrics identifies further potential efficiencies, then an implementation phase with Trusts beyond the current life of the Programme may be required.
Baseline: £21.76m
Forecast: £7.76m
Variance: -64.30%
Variance text: The Programme is now forecasting an underspend in 2014-15 of circa £16m. This underspend is a result of a pause in certain Programme activities and the new focus on wider hospital efficiency metrics to help deliver savings.
Whole Life Cost: £39.44m
WLCost text: The whole life costs of the Programme are estimated at £39.44mn between August 2013 and end March 2016. These costs, and/or the timing of expenditure, is subject to change in light of programme outcomes, experiences and stakeholder feedback.
Notes1: DOH NON CAPITAL
Notes2:
Sourcefile: IPA_2015.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.