Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Multiple, inconsistent methods for calculating NHS Supply Chain savings reduce clarity and cause mistrust.
Conclusion
NHS Supply Chain has in the past used multiple methods to calculate and report its savings depending on its 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. The method for calculating savings reported to government re-counted its savings from previous years. Separately, to show the savings trusts made individually, NHS Supply Chain calculated in-year savings for each trust, using prices paid the previous year as the baseline. The NAO report noted the mistrust and frustration caused by the differences in how NHS Supply Chain and trusts calculate savings.33
Government Response Summary
The government agrees, confirming that a new unified value and savings methodology has been implemented across the NHS from April 2024, aiming to standardize reporting, with NHSE set to review its compliance and effectiveness after the first year by Summer 2025.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 4.2 Implementation of the value and savings methodology from April 2024 is across the NHS including NHS Supply Chain. NHSE will review the compliance and effectiveness of this methodology after the first year. As part of the budget monitoring process, NHS organisations report on procurement savings including NHS SC. This information is shared with NHSE Commercial.