As a recent report by Ernst and Young shows price variations of as much as 300% across some NHS Trusts, Althea offers solutions to some of the biggest procurement challenges facing the NHS.
In February 2011 the National Audit Office concluded that better procurement could save the Health Service half a billion pounds a year and a recent study by Ernst and Young highlighted that approximately £500 million a year is being lost due to poor procurement processes and decisions. Ernst and Young spokesman, Joe Stringer, commented that the findings raised “…concerns about price variation and spending in the procurement of NHS suppliers.” The report further highlighted that prices paid for basic hospital supplies and services varied by as much as 300% depending on the Trust.
The National Audit Office and Public Accounts Committee have both similarly criticised that ‘opportunities for efficiencies’ were being missed due to the new Foundation Trust status meaning hospitals procure their supplies more independently. The danger of this comes where a Trust has paid a higher price for the same equipment and will then continue to be charged higher prices instead of a fair price being tailored to the Trust’s requirements.
Jason Long, Althea’s Business Development Director, understands these concerns and comments, “Price variation throughout the NHS is an issue which is having a profound effect on what are strained and dwindling budgets. In order to make significant savings Trusts need to evaluate procurement processes and consider other more cost-effective options. We understand the challenges that Trusts are facing in the new NHS economy which is why we created a portfolio of highly-focused solutions that aim to address the current clinical and financial challenges. These solutions deliver significant cost savings and improve equipment performance & lifecycle management leaving staff free to focus on patient care and treatment.”