Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
NHS Supply Chain's capacity and resilience for transformation delivery show notable weaknesses.
Conclusion
There are some weaknesses and strengths in how NHS Supply Chain is managing the transformation programme. Most notably, there are questions about the capacity and resilience of NHS Supply Chain to deliver the necessary change, particularly in light of the heavy reliance on the Chief Executive Officer for NHS Supply Chain and delays in getting the appropriate approvals for recruiting a chief delivery officer.27 NHSE acknowledged that the process has taken longer than it would want and that the necessary approval currently was ‘sitting between’ NHSE and the Department. The Department informed us that it is working with NHSE to streamline the approvals process.28
Government Response Summary
The government agrees with the committee's finding and describes existing NHS England oversight mechanisms, including annual business plan reviews and quarterly accountability meetings, which they believe provide sufficient challenge and support to NHS Supply Chain.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 2.2 The subsidiary company model provides NHSE with a proportionate level of oversight. There are a number of ways in which NHSE provides challenge and support to the company to effectively hold it to account and support it to deliver its objectives. 2.3 Importantly, there is an annual process in place through which NHSE critically reviews and works with NHS SC to develop and agree the company’s business plan and revenue and capital funding requests for the following year. The company’s annual plan and budget are approved by NHSE’s Board, which allows for a balanced decision on the appropriate level of funding provided to the company to drive modernisation and transformation weighed against other NHSE priorities. 2.4 NHSE also holds quarterly accountability meetings chaired by the Chief Commercial Officer (CCO). This allows NHSE to track performance against the business plan and remain informed on the transformation and modernisation plans. In addition, NHSE has a shareholder director on the Board of the company who is also a member of the Audit and Remuneration Committee. Attendance at the Board and Committee provides regular opportunity for NHSE to challenge on operational performance (including finance, risk, transformation and pay and reward), provide support, and identify where work within NHSE may be required to support the delivery of the company’s objectives. There are a number of other regular points of engagement with the company, including monthly finance and operations meetings, fortnightly meetings between NHSE’s Chief Commercial Officer and NHS SC’s CEO, and updates to the NHSE Board which take place at least twice per year.