OVERVIEW

The NHS is facing increasing demands: an ageing population, advances in science and technology, and rising public expectations. It must meet these demands from within its current real terms funding, while at the same time improving quality. The QIPP challenge, requiring the NHS to make up to £20bn of efficiency savings by 2014/15 to invest in meeting demand and improving quality, means that all parts of the health service will need to take bold, long-term measures to secure sustainable change. It is not an option to continue as before – the NHS needs to radically transform how it delivers services.

Procurement can play a valuable role in driving quality and value, and stimulating the economy. In February 2011, a report by the National Audit Office criticised the fragmented system of procurement in the NHS, saying it produced a great deal of waste. Hospitals were being charged different amounts for the same product, ordering in inefficient ways and failing to control the range of products they purchased. Whilst some improvements in NHS procurement are evident, the pace of change is not sufficient to meet the financial challenge facing the health service.

The Department of Health is now developing a new strategy, due for publication in December 2012, which will inform the approach to procurement in the modernised NHS. The ambition is to establish a world-class procurement system in the NHS, generating over £1bn of savings through improved procurement, and building strong relationships with industry that deliver game-changing procurement solutions.

There is no single solution – transforming procurement will be a challenge. More innovative procurement processes are needed, as well as more widespread procurement of innovation. By harnessing relationships with suppliers, the NHS can adopt existing innovations and stimulate new innovation to deliver quality and value for both NHS patients and taxpayers. By being a more demanding and intelligent customer, the NHS working in partnership with suppliers can deliver better services more efficiently to patients and act as an engine for growth.

World Class Procurement in the NHS: delivering quality and value will provide delegates with an opportunity to hear about and understand the new strategy and its implementation, from the people leading it, and how they will need to engage with it to ensure successful delivery of its full benefits.