Concern over NHS supply chain deal continues

Criticism over the government’s decision to delegate the NHS’ supply chain responsibilities to DHL, a German logistics company, has continued.

The Association of British Healthcare Industries (ABHI) has expressed “grave concerns” over the deal, which the Department of Health claims will save over one billion pounds over the next ten years.

John Wilkinson, director general of the ABHI, stated: “A very efficient and collaborative supply chain partner stands to be replaced by a purchasing organisation which will be focused on price and will restrict choice for patients and clinicians.”

“This whole deal has been conducted in virtual secrecy with minimal consultation or parliamentary scrutiny, and with no evidence produced on how this new regime will benefit patients or the taxpayer,” he added.

However, John Pattullo, DHL’s chief operating officer, said that his company would “generate value” for the NHS by “driving down prices”.

He told Channel 4’s News at Noon: “We will get the relevant clinicians together with our procurement experts and with input from suppliers and, in those sessions, talk about how to get new products to hospitals to drive innovation and hopefully better value for those hospitals.”

The Department of Health has said that employees in NHS Logistics, which is being replaced by the DHL service, would receive “broadly” the same terms of employment, if not better.

DHL’s contract starts on October 1st.

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