Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
NHS Supply Chain's reported savings vary significantly depending on the calculation method used.
Conclusion
NHSE considers that the NHS Supply Chain has delivered real savings and that the method to show its savings against its original target to save £2.4 billion by 2023–24 is clear.34 NHSE shared with us figures setting out 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.35
Government Response Summary
The government agrees, stating that a new value and savings methodology has been implemented across the NHS from April 2024, and NHSE will 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.