2019 is an important year for the NHS. It will begin delivering the vision outlined in the NHS Long Term Plan and NHS providers will take steps to further improve their financial sustainability. To support this complex and challenging agenda, a new financial regime has been in place since 1 April 2019, which will support the objective of ensuring that every trust achieves financial balance by 2023/24.
It is evident that NHS procurement continues to be the focus of much attention at a national level. Earlier this year we saw the appointment of Unipart Logistics to deliver the logistics service for NHS Supply Chain (NHSSC). With the new provider now fully operational, all critical elements of the new operating model for NHS Supply Chain are now in place to support the strategy for delivery of safe, fit for purpose, value for money products to the NHS. This change underpins Supply Chain Co-Ordination Limited (SCCL) the function that was set up with an ambition to realise savings of £2.4 billion for the NHS in FY2022/23. NHS customer engagement continues to be a focus for our members following the mobilisation of the 11 Category Tower Service Providers (CTSPs) for the Medical, Capital and Non-Medical Towers.
For those responsible for the development and delivery of procurement strategies in NHS organisations, understanding the latest position and emerging developments within the SCCL function is of vital importance.
NHS England and Improvement together with NHS system representatives have developed a Procurement Target Operating Model (PTOM) Blueprint in response to a Secretary of State request to address unwarranted variation in how ~£17bn of annual third party spend is managed by the NHS.
The PTOM Programme will transform the way how Procurement is delivered nationally across the NHS and within all 227 NHS trusts and foundation trusts to maximise the efficiency and effectiveness of Procurement and support delivery against the ambitions of the Carter Review and Long Term Plan. The PTOM Programme’s initial focus is on secondary care providers, however the model is designed to be scalable across primary care commissioning organisations and Arm’s Length Body (ALB) spend as future models of integrated care delivery gain traction across the system.
The PTOM Programme builds on the procurement operating model changes that have, and will be delivered, as a result of the NHS Supply Chain (NHS SCCL) Programme. The PTOM Programme focusses on the areas that were not included in the scope of that the Supply Chain programme, namely working closely with Providers to optimise the operating model, including processes, for non-NHS SCCL provided services and goods.
In the current phase of work, the PTOM programme is establishing the foundations for deployment by:
1. Establishing career pathways that allow for commercial capability to be developed and shared across the system, leveraging the Government Commercial Organisation and Government Commercial Function learnings
2. Proving the value for Robotics Process Automation in transactional procurement & finance and how this is best delivered at scale across the NHS
3. Developing the approach for effectively managing the market and suppliers to leverage NHS spend
HCSA remains focused on NHS Talent Management to support staff retention and development within NHS procurement. Our Learning and Development strategy focuses on a number of talent development events such as the Procurement Development Programme and once again we are proud to offer Future Leaders for the third year running at conference.
Check out our website news for further developments as we approach this year’s conference on 27 and 28 November in Harrogate. With a clear focus on significant technology automation in the procurement sector, 2019 is sure to provide some interesting and exciting insights.
The profile and expectations of NHS procurement, particularly at Trust level, will continue to increase. There is some excellent work being delivered in the NHS, much of it through collaboration between NHS organisations, but also with its suppliers. This year’s Conference, Procurement the Reality – the Case for Change and Transformation provides a great opportunity to share the great work that is going on and examine best practice.
The HCSA 2019 Annual Conference and Exhibition is the leading event in the NHS procurement calendar and Procurement the Reality – the Case for Change and Transformation will give presenters and delegates unparalleled opportunities to network, share good practice and engage in debate about the evolution of NHS procurement over two stimulating days.
Designed specifically for procurement personnel, contract managers, commissioners and suppliers, this year’s Conference will bring together expert speakers to discuss how NHS procurement can best position itself to meet the needs of a health care environment subject to increasing scrutiny from the press, politicians, patients and other stakeholders. The Conference is taking place at a critical time and delegates will benefit from both the learning and networking opportunities which will be provided.