NHS supply companies braced for sector-wide commercial strategy

NHS procurement managers and their suppliers are awaiting a new service-wide commercial strategy, due to be published by the Department of Health.

The operating model will guide how procurement works across the NHS at a time when government departments are expected to cut costs and be more efficient.

As a result, it will be of particular interest throughout the complex, multi-billion pound NHS purchasing and supply chain.

It was certainly being anticipated at a conference in Basingstoke today attended by 120 or so delegates representing the NHS and private sector supply companies.

The theme was about selling into the NHS via its ‘collaborative procurement hubs’. These are commercial organisations with a significant impact on how products and services are bought and managed by the Trusts within their geographic areas.

While some of the hurdles faced by SMEs in selling to the NHS are to be eased thanks to the Glover Review, it is clear that procurement hubs will be seeking to take costs out of the supply chain.

For the private sector suppliers, the message was clear: understand the market and appreciate the critical need to offer cost savings. Whatever level of engagement you have with the NHS, it is important to accept who is in the driving seat and what their definition of ‘value’ is.

There were some tensions evident today given the balance of power in what is a fiendishly complicated and competitive purchasing environment.

Let’s hope the new commercial strategy makes the best of what funds are available – for suppliers, NHS staff and ultimately patients themselves.