Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
NHS Supply Chain expects at least three-year delay reaching 80% market share target.
Conclusion
We asked NHS Supply Chain when it expected to reach 80% market share. NHS Supply Chain first told us that it would not be at 80% until it submitted its business case this summer to NHS England to seek the broader funding required to build the capacity. It described logistical challenges in the south, notably warehousing and having to find between 900,000 and 1.1 million square feet.9 When pushed on whether it could say when it might reach the 80%, NHS Supply Chain said it “would like to see it as soon as possible” but that it was subject to infrastructure requirements and technology modernisation and how fast those could happen. Then it would go through a business case approval process for funding. It said that “As a minimum this will take at least three years to do. As a maximum I would hope not much more than three years, but that is the reality.”10
Government Response Summary
The government agrees with the observation, stating that NHS Supply Chain expects to submit a business case for its modernisation programme by Winter 2024, which will detail how and when the 80% market share goal will be met. The 2024-25 business plan also targets 65% market share by year end through specific logistics and system improvements.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 1.2 The business case for NHS Supply Chain’s modernisation programme will set out how and by when the conditions for the achievement of the original 80% goal will be in place. NHS Supply Chain expects to submit a programme business case to NHS England (NHSE) by Winter 2024. While NHSE cannot mandate the use of NHS Supply Chain (NHS SC), the modernisation programme, if delivered in full, will unlock the potential for the 80% target to be met. 1.3 The NHS SC business plan for 2024-25 sets out a target to achieve a market share of 65% by year end. It includes improvements to the logistics channels by mid-year, supporting growth in the north, piloting and scaling the new online ordering system alongside the continued engagement with Trusts and ICSs to ensure commercial solutions meet the needs of the NHS. 1.4 NHS SC will continue to update the Committee on details of performance against the plan until completion of the programme.