Health Sector News
‘Radical’ new procurement programme to save the NHS £1.5 billion
With the NHS spending over £20 bn annually on goods and services – accounting for some 30% of each hospital’s operating costs – but, in the view of HealthMinister, Dr Dan Poulter MP, the NHS still ‘failing to harness its enormous purchasing power’, the Minister lastmonth unveiled a new NHS procurement development programme, the goal of which he said would be to help NHS Trusts ‘find’ over £1.5 bn of procurement efficiencies over the next three years. Describing the programme, which was
launched on 5 August, as ‘a radical new blueprint for how the NHS buys everything – fromrubber gloves and stitches, to new hips, building work, bed pans, and temporary staff’, the Department of Health (DH) said it would ‘radically change what our NHS does with itsmoney, by cutting wasteful spending’. In unveiling Better Procurement, Better Value, Better Care: A Procurement
Cover Story Energy scheme to save Trust £920,000 annually
The front cover of this issue of HEJ shows the waste heat boiler which forms part of the recently completed CHP energy centre at the Royal Berkshire Hospital, Reading. Working with the Royal Berkshire
NHS Foundation Trust under a Carbon and Energy Fund scheme, health sector energy specialist, Dalkia, has completed the design and build phase of the energy scheme, the goal of which is to achieve a 25% carbon footprint reduction by 2015, and secure annual energy savings of £920,000. Under the 15-year contract, Dalkia has
designed, built, and funded, a 2 MWe Cogenco CHP unit, and a 1 MWwaste heat boiler, and installed hot water mains and a plant management system to control the energy centre. Downstream energy management, including the installation of 1,500 low energy lights, work to improve insulation,
fitting of optimisation controls, and management of heating systems, are also all encompassed, with the costs of the contract to be repaid via guaranteed performance savings. The new lighting – which will be fitted in wards and circulation areas – will save £30,000 a year alone. Dalkia will operate the energy centre for the Hospital for the next 15 years. Having managed energy in hospitals
since 1938, Dalkia now provides secure on-site energy to over 6,000 hospitals in 35 countries – including through over 50 combined heat and power plants in NHS hospitals. By implementing site-wide carbon management strategies, supported by energy awareness campaigns, Dalkia says it ‘delivers significant cost and carbon reductions using proven, energy-efficient technology, and best practice optimisation techniques’.
Development Programme for the NHS (available at
http://tinyurl.com/kbkl6su), the DH said the Government’s NHS reforms were already making £1.5 billion of back office savings annually for the service ‘by reducing unnecessary bureaucracy’. However, the new programme would ‘show how our NHS can save much more, and support economic growth, by changing the way it buys supplies and does business’. Dr Poulter said: “The Government is
putting an extra £12.7 bn into our NHS, but that money needs to be spent much more wisely by local hospitals, who must wake up to the potential to make big savings, and radically change the way they buy supplies, goods, and services, and how they manage their estates. “Wemust end the scandalous situation
where one hospital spends hundreds of thousandsmore than another, just down the road, on something as simple as rubber gloves or syringes, simply because
they haven’t got the right systems in place to ensure value formoney for local patients. This kind of poor resource management cannot continue.” The new publication ‘takes an open
and frank look at the procurement inefficiencies that currently exist in our NHS’. The DH said: “Findings show there is little consistency in the way our NHS spends money, and that very few senior people in NHS hospitals know what good procurement looks like. There is also an over reliance on ‘framework agreements’, at the expense of the NHS striking radical money-saving deals, such as hospitals getting together to bulk-buy equipment for a discount.” One of the key ‘actions’ set out in the
new strategy will be the recruitment, to start shortly, of a new NHS ‘procurement champion’ with private sector expertise, ‘with the authority to drive better procurement practices across the whole of the NHS’.
Dalkia UK Elizabeth House 56-60 London Road Staines Middlesex TW18 4BQ Tel: 01784 496200
www.dalkia.co.uk
Health Estate Journal September 2013
11
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122
