How the NHS's E-Procurement strategy could save 5M per Hospital
Although recent e-procurement strategies have estimated a potential £5 million savings per hospital in a recent NHS report, analysts are predicting that this new system could take time before becoming the new industry-wide standard. Before the Department of Health and the NHS can have this system up and fully-operational, a collective effort and several years of work would need to be given by the Department, before e-procurement could be achieved throughout all of the NHS’ transactions.
“The ambition of this strategy is for all NHS purchase-to-pay transactions and all category management activities to be undertaken by electronic means to cover all non-pay expenditure,” the report states, “It will take several years of concerted effort across the NHS landscape, and across the NHS supplier base, to achieve this ambition.”
For a 600 bed hospital, the report suggested that this new e-procurement strategy would produce an annual savings between £3 million and £5 million.
A central IT system will be established to support the strategy, which will be “interoperable with existing and future local e-procurement systems so trusts can locally select their preferred technology partners”.
Within this strategy, adhering to PEPOL regulations, a European IT standard which allows suppliers to engage with the public, will become a mandatory requirement. Additionally, NHS providers will be required to submit monthly reports of accounts payable and all purchase order transactions to show benchmarking efforts towards comparable pricing by other providers in the network.
Dr. Dan Poulter, parliamentary under secretary of state for health, said in a foreword to the report: “There have been many previous initiatives to realize procurement efficiencies but this time we mean business and are determined to deliver efficiencies to free up more money for frontline care.”
“As well as contributing to improved patient care, wider use of e-procurement solutions driven by global standards will generate significant financial savings for NHS providers, achieved through reduced errors, reduced obsolescence and increased productivity,” the report went on to say, “Frontline clinical care cannot be delivered to patients without the goods and services provided by internal support departments and external suppliers. Patient care is directly affected, either positively or negatively, by the success or failure of the procurement processes that place goods and services at the disposal of clinical staff.”
David Rabjohns, e-commerce enterprise architect at NHS Supply Chain, said: “This strategy will allow transparency throughout the NHS procurement process, simplifying the supply chain, driving cost efficiencies, increasing accuracy and allowing greater compliance. It will also enable a more unified system of procurement across the NHS, enabling product comparison, aggregation and standardization across trusts.”
Dubai's new smart neuro spinal hospital: need to know
We take a look at Dubai's new smart hospital.
What: The Neuro Spinal Hospital and Radiosurgery Centre is a new hospital featuring state-of-the-art technology for spinal, neurosurgical, neurological, orthopaedic, radiosurgery and cancer treatments. The 700 million AED hospital, (equivalent to £138 million), has 114 beds, smart patient rooms, and green spaces for patient rehabilitation, and is four times the capacity of its former premises in Jumeirah. It is also the UAE’s first hospital to have surgical robots.
Where: The hospital is located in the Dubai Science Park. Founded in 2005, Dubai Science Park is home to more than 350 companies from multinational corporations in life sciences, biotechnology and research; over 4,000 people work here each day.
Who: The UAE's Neuro Spinal Hospital and Radiosurgery Centre was first established in Jumeirah in 2002 by Dr. Abdul Karim Msaddi, as the first as the first "super-specialty" neuroscience hospital.
Why: With advanced diagnosis and robotics, the hospital will provide care across neuroscience, spine, orthopaedics and oncology for people residing in the UAE, as well as international patients.
Prof. Abdul Karim Msaddi, Chairman and Medical Director of the hospital, said: “We are proud to bring world-class healthcare services to Dubai and believe our next-generation hospital will be a game-changer for the emirate’s and the region’s medical industry.
"It will not only significantly increase the availability of specialist neuroscience and radiosurgery treatments and provide better patient care but help attract and develop local and international talent. Investing in the new centre represents our continued faith in the resilience of the region’s economy, as well as a testament to our ongoing drive towards healthcare innovation in the UAE.”