HEALTHCARE & HOSPITALITY


NHS TRUSTS COULD SAVE 10% ON


ESSENTIAL REPAIRS AND MAINTENANCE


A recent study undertaken by MindMetre Research has revealed that NHS Trusts across the UK could make significant savings each year by re-engineering their repair and maintenance (R&M) materials, purchasing and management.


Commissioned by Travis Perkins Managed Services, the study highlights that R&M currently costs NHS Trusts £4.4 billion every year and making it a key area to consider for significant cost savings that won’t compromise on quality of care.


The study, Healthy Savings?, also disproves the widely accepted notion that NHS Trusts outsource all R&M activity, finding that 78% of trusts have an internal R&M department, 8% have mixed in-house and outsourced R&M and only 14% outsource their R&M responsibility completely.


In the 78% of NHS Trusts that retain R&M responsibilities in-house, there is significant inefficiency in purchasing and the supply and stocking of materials and the study says that this is where real cost and time savings can be achieved.


The study suggests that the overall financial benefit for NHS Trusts is likely to match that achieved in other public services, making comparisons with the housing sector, where a significant number of organisations have begun to address R&M inefficiencies. Against this background the report suggests that Trusts should consider addressing R&M inefficiency through initiatives such as appointing an outside agency to assume responsibility for purchasing and stocking materials, this could see cost savings of 10%, an average already


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achieved by certain Local Authorities and Housing Associations.


One Derbyshire NHS Trust profiled in ‘Healthy Savings’ has already identified weaknesses in the buildings maintenance supply chain and addressed this by forming a shared services initiative with two local councils and a housing association. Through this initiative, the Trust saw tangible results, such as a reduced number of suppliers and better negotiated prices. As well as these immediate cost savings, an outside agency was able to provide just-in-time stock levels, releasing cash flow for the Trust, along with implementing accurate record keeping and stock management - ensuring audit compliance as well as no losses or theft.


Easier and quicker access to the right materials through visiting just one dedicated store is already resulting in improved productivity of maintenance staff and a higher first-time-fix rate. R&M operatives have also been able to feedback directly to the supplier on the quality of products and influence the range of materials stocked.


Stuart Hough, Managing Director of Travis Perkins Managed Services, commented: “With NHS Trusts under continued pressure to achieve significant cost savings, the smallest inefficiency can have a significant


impact. Identifying the purchasing and management of R&M materials as a starting point however, means NHS Trusts can begin to address a range of issues around cost and efficiency.


“Partnering with a business that improves and shortens the supply chain presents a viable way for organisations like NHS Trusts to better meet budgets and reduce inefficiency. Bringing the purchasing cost closer to the original supplier not only reduces spending, it also brings the benefit of product standardisation, which leads to high product quality and lower long-term expediture.


“This study concludes that savings for the NHS could match those achieved in other industries through partnership with an organisation for the supply of R&M materials. However, one thing it does not take into account is the fact that the non- availability of facilities, due to repair and maintenance, which result in interruptions to clinical and care procedures and have a major ‘knock on’ consequential cost.


While these consequential costs have not been analysed in the current study it seems clear that there are even greater potential cost savings linked to the reduction of downtime of crucial NHS facilities.


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