New NHS procurement strategy ‘to unlock major savings’

The government has announced a revamped blueprint for NHS procurement that aims to reduce wasteful spending, thus unlocking further resources for frontline care.

Covering everything from rubber gloves and stitches to hip replacements, building work, bedpans and temporary staff, the new strategy is intended to deliver savings of 1.5 billion pounds for the NHS by cutting down on unnecessary bureaucracy.

Actions that will be taken include the introduction of a new NHS procurement champion with private sector expertise, who will work with a top-level team to provide ongoing scrutiny and guidance.

Hospitals will be mandated to publish what they pay for goods and services and set up a new price index for hospitals, while spending on temporary workers will be reduced and a fresh emphasis on bulk orders of medical equipment will be introduced.

Health minister Dr Dan Poulter said: "The money saved though our plans to cut wasteful NHS spending can be spent instead on the things that really matter – such as more operations or revolutionary new treatments."

This comes as part of wider efforts to help the NHS make up to 20 billion pounds in efficiency savings by 2015 to help cope with rising costs.