The Good Governance Institute in partnership with Connect Health is today launching “Reimagining Procurement in the NHS” – a useful and practical report which provides insight and expert guidance ahead of changes in NHS procurement.
Drafted following a series of consultations with industry leaders from across a variety of specialities, it reflects on the priorities and challenges of procurement in an NHS setting and presents, what we consider to be, some key learnings for the NHS on the implementation of a new procurement approach.
The report was conceptualised in response to proposals calling for legislative change, specifically for Section 75 Regulations to be revoked in favour of commissioners using their discretion to apply a ‘best value test’.
Andrew Corbett-Nolan, Chief Executive, GGI commented
In the current health environment, it is increasingly important that NHS organisations are able to maximise the value and outcomes achieved through procurement exercises. GGI’s new report, Reimagining Procurement in the NHS, published in partnership with Connect Health, describes what a best value procurement approach might look like for the NHS, as well as potential challenges associated with this. Importantly, it also provides a series of case studies, tools and resources which will support organisations to drive improvement in this area. This is essential reading for Boards looking to improve the quality and impact of services through procurement.
Prof Andrew Walton, Executive Chair of Connect Health added: “With upcoming changes to legislation, we wanted to explore what a new procurement regime could look like and how it could be effectively applied in the NHS. The new report aims to bolster the body of knowledge around ‘best value’, as well as support the creation of guidance which recognises the importance of being outcomes focused, and that there is a collective understanding locally of which metrics need to be measured and captured.”
David Hare, Chief Executive of Independent Healthcare Providers Network said
It’s vital that future changes to NHS legislation are made solely in the best interests of patients, with any new procurement regime seeking to ensure the best possible provider of care, regardless of who provides it. We therefore welcome this new report which provides practical guidance on what good procurement looks like, including how to ensure choice and competition is retained with a laser-like focus on ensuring value for money for both patients and tax payers alike.
The new report outlines some of the key challenges in the design and application of a new procurement regime. In particular, any new procurement regime must be outcomes focused, defined by patients and the public and not so prescriptive as to prevent local innovation.
In summary, the top eight considerations for the design and application of a new NHS procurement regime include:
1: Defining Value
2: Definitions of value should be locally led
3: Ensure focus is placed on outcomes not process
4: Procurement in the NHS and local authorities
5: The importance of robust consultation
6: Ensure competition and choice
7: Continuous improvement
8: Practical application and weighting