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Source · National Audit Office

NHS Supply Chain and efficiencies in procurement

The NHS is not making the most of its spending power to save money in purchasing medical equipment and consumables.

Published: 12 Jan 2024 Recommendations: 7 Type: Value for Money NAO confirmed: 7 Department: Department of Health and Social Care
Dept: Department of Health and Social Care Topics: Commercial and financial managementHealth and social careNHSProcurement and contract management nao.org.uk →

Recommendations

7 items
5 accepted 2 partially accepted 6 implemented

Recommendation 1

Addressee: Department of Health and Social Care · Source location: Page 12, 24 a

NHSE should draw on the new HM Treasury guidance The Government Efficiency Framework, to set up a system of validation and assurance of Supply Chain?s reported savings towards the £1 billon target. This should include agreeing the relevant elements of Supply Chain?s reported savings with trusts so that there is one version of the truth with regards to savings.

Response position: Partially accepted

Delivery: Implemented · Q4 2024/25 · Confirmed by NAO

Recommendation 2

Addressee: Department of Health and Social Care · Source location: Page 12, 24 b

NHSE should set out how it will incentivise and steer trusts to make best use of procurement through Supply Chain

Response position: Partially accepted

Delivery: Implemented · Q4 2024/25 · Confirmed by NAO

Recommendation 3

Addressee: Department of Health and Social Care · Source location: Page 12, 24 c

NHSE should work with the trusts that do not submit data on their spending to help them overcome the barriers to submitting, with the aim of making data on spending through and outside of Supply Chain as complete as possible.

Response position: Accepted

Delivery: Implemented · Q4 2024/25 · Confirmed by NAO

Recommendation 4

Addressee: Department of Health and Social Care · Source location: Page 12, 24 d

NHSE should proactively and directly use its data on trusts? spending through different procurement routes to understand why trusts are not using Supply Chain and to encourage trusts to make greater use of Supply Chain.

Response position: Accepted

Delivery: Implemented · Q4 2025/26 · Confirmed by NAO

Recommendation 5

Addressee: Department of Health and Social Care · Source location: Page 12, 24 e

Supply Chain should run its transformation as a structured programme for its full duration, identifying and reporting on costs, benefits, dependencies and risks.

Response position: Accepted

Delivery: Implemented · Q4 2024/25 · Confirmed by NAO

Recommendation 6

Addressee: Department of Health and Social Care · Source location: Page 12, 24 f

By the end of 2024, Supply Chain should improve its understanding of why customers are unsatisfied with its services and develop a targeted action plan to make substantial improvements in satisfaction.

Response position: Accepted

Delivery: Implemented · Q2 2024/25 · Confirmed by NAO

Recommendation 7

Addressee: Department of Health and Social Care · Source location: Page 12, 24 g

As far as they are able to do so, NHSE and DHSC should speed up the appointment processes for Supply Chain?s recruitment of senior staff.

Response position: Accepted

Delivery: No longer relevant · Q1 2025/26 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.