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Halt on supplier price & cost increases to deliver £150m NHS savings

In order for the NHS to continue to provide critical services efficiency savings, in the region of £2 billion must be secured through better procurement, calculations confirm.

In the light of this revelation, healthcare products and food supplier to the NHS, NHS Supply Chain has announced that no supplier price or cost increases will be accepted from the firm’s suppliers. This strategy, it says, is in line with the Department of Health’s recent guidance on combatting inflation, in which it advises trusts to not accept any pricing or cost increase. 

With this in mind NHS Supply Chain has announced it will be working closely with its suppliers and customers over the coming months to deliver the £150 million in savings by March 2016. These savings will be reinvested back into front-line patient care.

Nick Gerrard, Chief Executive Officer at NHS Supply Chain, says:

“NHS Supply Chain is committed to working with our suppliers to deliver these savings, and has a range of strategies to improve efficiency such as commitment, rationalisation and many other supply chain cost reduction activities.

Gerrard described in more detail how these savings will be delivered:

“NHS Supply Chain is currently undergoing a range consolidation programme to reduce duplication and to streamline down to a tighter core product range within our national catalogue. We are confident that this will deliver the balance of quality, choice and value that NHS trusts need to deliver the best outcomes for their patients. Not only will this help to protect front-line patient services but it will also go some way to developing mechanisms to drive effective procurement in the years to come.”



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