Recommendation 4

The way NHS Supply Chain has calculated and reported its savings has caused confusion and mistrust. NHS Supply Chain has used several different methods for calculating savings depending on the audience, for example, to government, trusts and suppliers. Each method gives a different result, risking clarity over how much NHS Supply Chain has actually saved. NHSE has shared with us NHS Supply Chain’s reported savings through two different methods. For the first, using the original method set by the Department, NHSE shared with us NHS Supply Chain’s reported savings of £3.3 billion from 2016–17 to 2022–23. For the second, using a method, which is more in line with trusts and does not re-count savings, NHSE shared reported savings of £1.7 billion over the same period. Trusts do not always recognise the savings that NHS Supply Chain reports, causing mistrust and frustration. NHS Supply Chain and NHSE have developed a new, more consistent, method for calculating savings, which is being rolled out across the NHS. Recommendation 4: A year after implementing the new savings method, NHSE should assess whether trusts accept the savings that NHS Supply Chain reports. The new method for calculating savings should be used in all cases to ensure consistency.