Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
Department and NHS England intentionally chose not to mandate NHS Supply Chain use.
Conclusion
When the Department set up NHS Supply Chain, it did not make it mandatory for trusts to use it and trusts are free to buy consumables and medical equipment directly from suppliers or other supply organisations. There are several reasons why the Department did not mandate the use of NHS Supply Chain, including legal barriers. NHSE explained it cannot mandate that foundation trusts buy through NHS Supply Chain, and NHSE noted that it was a very deliberate decision for trusts to use it voluntarily. Instead, the Department wanted to make NHS Supply Chain so ‘overwhelmingly attractive’ that trusts would not choose to go elsewhere.15 NHSE has tried to support NHS Supply Chain and increase trusts’ use of it, for example NHSE has not specifically mandated that all trusts buy all large diagnostic equipment through Supply Chain however, trusts must buy some specific specialised high value products through NHS Supply Chain.16
Government Response Summary
The government agrees, stating that NHS Supply Chain will submit a business case by Winter 2024 for its modernization programme, aiming to create conditions for achieving an 80% market share. Additionally, the 2024-25 business plan targets a 65% market share, with specific improvements including enhanced logistics channels by mid-year and a new online ordering system.
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.