Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Accepted
NHS procurement's focus on acquisition costs alone disregards overall product value and patient outcomes.
Recommendation
The Urology Trade Association told us in written evidence that it was concerned that the current focus by NHS procurement on acquisition costs alone is failing to acknowledge the importance of value for money across the whole patient pathway, and that lowest price does not always translate to best value for patients.43 The Medical Technology Group (MTG) argued that the overall value of products is often overlooked by NHS Supply Chain compared to the costs of the initial procurement of the product. It noted that medical devices could provide the NHS with longer-term savings, as well as providing patients with better outcomes, which has a positive impact on patient lives and the economy as well as reducing engagement with health and care services. MTG recommended increased efforts within NHS Supply Chain to develop and deliver ‘Value-Based Procurement models’, capturing the whole system savings necessary for the NHS.44 40 Qq 59–60, 107; Correspondence from NHSE to the Public Accounts Committee, 15 February 2024 41 Qq 53–58 42 Q 107; C&AG’s Report, Figure 12 43 NHS0005 44 NHS0007 NHS Supply Chain and efficiencies in procurement 15
Government Response Summary
The government agrees and states NHS Supply Chain will redesign its Commercial Service Proposition by November 2024, led by a new Clinical Executive Director, to enhance clinical engagement in sourcing decisions. NHS Supply Chain will also continue to work with trusts to implement Value-Based Procurement initiatives and focus on a broader range of value drivers beyond acquisition costs.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 NHS SC engages clinicians in all sourcing decisions. Lead trusts are used to ensure the voice of the clinical workforce is at the forefront of understanding needs that should be fulfilled by commercial activity. 6.3 To create the opportunity to enhance the voice of the clinical teams in future decision making, NHS SC will re-design the Commercial Service Proposition by November 2024 and be clearer in the opportunities for representative clinical groups to engage in future commercial activity. This work is being led by the newly appointed Clinical Executive Director of NHS SC. 6.4 NHS SC will continue to work with NHS Trusts to identify when they will implement the current schedule of Value Based Procurement initiatives and continue to focus selection criteria for supplies across the broad range of value drivers in the NHS (including sustainability, patient outcome and clinical efficiency alongside unit cost). 6.5 These steps will help reduce the current catalogue of around 600,000 individual items where the intention is to ensure that any product that an individual clinician might want is available for them to purchase to one where there is a smaller list of products based on clinical input and best practice. 6.6 NHS England will provide clinical support to NHS SC where necessary to support the delivery of the savings programmes.