Gary Welch Selling To The Nhs Ukti 31 Mar 2010


Published on

Selling to the NHS - Presentation to the UK Trade & Investment Office for Life Sciences Roadshow. 31 March 2010

  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Gary Welch Selling To The Nhs Ukti 31 Mar 2010

  1. 1. Life Sciences Roadshows Selling into the NHS Understanding the NHS Market and Procurement Landscape Leeds, 31 March 2010 Presented by Gary Welch
  2. 2. Selling into the NHS The NHS The Procurement  Landscape How to Sell to the  NHS 
  3. 3. The NHS is large and complex..... 10 Strategic Health  Authorities 392 Trusts (including  Foundation Trusts) 152 Primary Care Trusts Total expenditure of £100bn ‘Non‐pay’ goods and services  £30bn Accounts for a fifth of all  public spending……….. ……but only 4% of its funding  is used on prevention
  4. 4. The NHS Secretary of State for Health ‐ Structure Department of Health Taken from The New Independent NHS: A Guide by A. Regulator Talbot-Smith and A. M. (Monitor) Pollock Strategic Health Authorities Primary Care Trusts (Social) Care Trusts Primary Care: Independent Sector: NHS GPs, dentists, Walk-in 1. Primary Care NHS Foundation Treatment opticians, Centres 2. Treatment Centres Trusts Trusts Centres pharmacists 3. Hospitals NHS Trusts moving to Statutory Accountability Contractual Accountability foundation status
  5. 5. NHS Priorities & Plans Improving cleanliness and  reducing infections (HCAIs) Improving access  ‐ 18 week  referral and access to GP  services Keeping adults & children well,  improving health and reducing  inequalities – in particular Stoke  and Cancer services Improving patient experience Preparing to respond to ‘state of  emergency’ e.g. pandemic flu Reducing local variation and  eliminating poor performance
  6. 6. The NHS ‐ Further Reading  The New NHS: A  NHS plc The Future of the NHS Guide by by by Dr Michelle Tempest  A. Talbot‐Smith and  A. M. Pollock (Editor) A. M. Pollock
  7. 7. Challenging times ahead…. The NHS is entering a period of unprecedented challenges and the way we have delivered in the past will not necessarily deliver in the future. The NHS will have to make efficiency savings of £15bn-£20bn from 2011-14 at a time when we are pressing ahead with reform to deliver higher quality care for patients. The current economic climate will lead to the NHS looking for ways to ensure the health budget not only goes further through improved Quality Innovation Productivity Prevention  efficiency but also improved (QIPP) quality, and the only way in which efficiency and quality can be achieved is through innovation
  8. 8. Innovation is central to the future of the NHS A pioneering NHS - connecting regional innovation initiatives with regional commercial support units and developing localised innovation procurement plans 8
  9. 9. High Quality Care For All Quality at the heart of the NHS Locally‐led, patient‐centred, clinically  driven Working in partnership with staff NHS Constitution Includes specific actions on innovation....... Legal duty placed on the SHAs to  promote innovation Innovation fund – aimed squarely at  diffusion NHS Evidence Service Series of specific measures on  pharmaceuticals and medical devices 9
  10. 10. OLS Blueprint The Government will ensure that at least  two of the new Commercial Support Units  to be set up, under the new NHS  Commercial Operating Model, will develop  and test regional approaches to support  innovations from the medical technology  sector, through engagement with NHS at an  early stage of product development Commitment now extended to all 10 CSUs  10
  11. 11. REGIONAL APPROACH TO TECHNOLOGY‐LED INNOVATION NHS Operating  SHA 10 year Framework IDENTIFY vision NEEDS Quality &  PCT Productivity priorities REGIONAL PRIORITIES NICE, MTAC, CEP NIC Innovation Fund Identify existing  Innovation Lead  Innovation Hubs MedTech r’table & Stakeholder Identify new  NIHR NTAC innovations that  SBRI Group opportunities  are not being  for innovation taken up COMMERCIAL SUPPORT UNIT Mobilise  Develop pre‐ Innovative procurement procurement  commercial  landscape to  procurement  speed adoption DH Guidance programmes MMTSG  NHS Life Science Delivery Board OLS projects Procurement Industry Pre‐commercial  11 procurement
  12. 12. NHS Procurement ‐ the OGC Procurement  capability review Leadership The Procurement  Landscape Skills Development and  Deployment Systems and Processes
  13. 13. Necessity ‐ not nicety: The new Commercial  Operating Model Development and implementation of  regional Commercial Support Units  (CSUs) Repositioning of NHS Supply Chain Reshaping of the centre Closure of NHS PASA and transition of  functions to new organisations during  2009/10 Strong governance through an NHS  Commercial Development Directional  Board
  14. 14. Regional Commercial Support Units  (CSUs) Providing a complete commercial service  across each region Providing efficient groupings of scarce  commercial skills, and supporting  commissioners to improve acquisition  competencies in World Class Commissioning Driving uptake of services from national  organisations and be an “intelligent client” in  areas such as demand management Act as a focus for suppliers to engage with the  NHS and ensure an improved flow of  innovations into the system 14
  15. 15. Procurement Landscape for ‘non‐pay’ Spend   Level Benefit Challenge Organisations National Available to whole of NHS  Framework NOT  DH PICD & CMU – ‘widest’ route into NHS commitment. Trusts not  NHS Supply Chain/DHL mandated to use  OGC contracts OGC NHS PaSA Regional Consolidate demand form  Trust may be selective in  Collaborative  a number of trusts – often  which contracts they  Procurement  commitment but  participate in Organisations – the  sometimes frameworks.  ‘Hubs’ CSUs now remit to support  innovation Local Commitment Time consuming to ‘sell’  Local Trust  and trial products over  Procurement Teams and over again in each  trust
  16. 16. Pharmacy
  17. 17. Medical and Surgical Equipment Level Orthopaedics Cardiology Diagnostic  Dressings  Sutures Equipment (and other  LV/HV) National NHS Supply  NHS Supply  NHS Supply  NHS Supply  Chain/DHL – Chain/DHL Chain/DHL Chain/DHL  framework  (little used) with local  mini‐comps Regional Various Hub  Various Hub  arrangements arrangements Local Local  Local  Local  Local  Local  contracts contracts contracts contracts – contracts some via  other  national  suppliers
  18. 18. What happened to NHS PASA categories and  functions? What’s going Where ? Energy, Fleet, Estates and  Outsourcing Buying Solutions ICT, Telecare and Telecoms Professional Services, Temporary  Staffing and Audit Sid4Health Pharmacy DH – Commercial Medicines Unit NHS Development Regional SCU/CPH Sustainability DH – PICD  Innovation Commissioning & PCT Toolkits CEP – medical equipment  NICE evaluations    
  19. 19. Legal and Governance Framework for  Procurement All trusts must follow their own Standing Financial Instructions when  ‘buying’ – e.g. tenders over £5k spend,  OJEU required for procurements over current threshold (~£100k) All hub/regional contracts by their size, fall into OJEU processes OJEU requires that the evaluation criteria and scoring/weighting system is  identified in ITT. Alcatel ‘stand still’ period (10 days) and debriefing of  bidders OGC issued a ‘sustainable procurement’ guide Open, fair and transparent procurement – open to audit scrutiny and FOI Meets all legal requirements ‐ e.g. race & equality Glover Report – SMEs ‐ £20k threshold
  20. 20. So how do you sell to the NHS? (1) 1. Understand the health economy and how it works 2. Be clear about how your product or service helps address national  priorities or efficiencies – align your product 3. Understand the care pathway and touch points for your product 4. Identify key influencers – patients & HCWs – and engage. But remember  they may not be the buyers or budget holders. (Lots of support but no  sales!!)  5. Build evidence – package into a good business case and develop your  sales stories around the benefits (sharper, quicker, safer, easier, cheaper) 6. Identify who buys (cost) and where the benefits go – may not be the  same place 7. Secure any necessary approvals
  21. 21. So how do you sell to the NHS? (2) 8. Identify key centres for your product (e.g. Orthopaedics – SWLEOC) 9. Decide the most effective level of entry (local, regional, national) for your  product – identify procurement calendars and forward plans 10. Consider carefully the complexity and cost of pursuing larger national  opportunities 11. Be aware of the human factors on the NHS/buying side and any likely  departmental user interest and conflicts 12. Understand the legal and governance requirements for procurement and  use to your advantage – e.g. monitor OJEU (TED – Tenders Electronic  Daily) 13. If national then check category responsibilities with websites of NHS  PaSA (pharmacy), NHS Supply Chain and Buying Solutions ‐ and make  contact 14. Register with sid4health (
  22. 22. So how do you sell to the NHS? (3) 15. For CPHs contact details research NPA website 16. For Trust contact details research DH PICD website, Google or Connecting  for Health or Trust websites ‐ seek out contact details for Head of  Procurement. Could also use Binleys ( 17. For securing local commitment approach CPHs, CSUs or Trusts – even for  national frameworks (uptake) 18. To find a partner (agent/distributor) contact the relevant trade  associations such as ABHI, BHTA 19. For introducing innovative products to the NHS approach innovation  organisations – instead of or as well as procurement organisations 20. Get expert advice for your product development and sales and marketing  teams 21. Hard work, tenacity and persistence
  23. 23. Websites for further information NICE Connecting for Health NHS Supply Chain  ABHI  BHTA  NHS PaSA Sid4health Supply2gov Supply2health Department of Health Tenders Electronic Daily
  24. 24. Websites for further information NTAC NIC NIHR SBRI  Innovation Hubs NHS Procurement Alliance (links to all Collaborative Procurement Hubs) HITF and MMTSG DH Innovation Procurement Plan Publicationsandstatistics/Publications/ PublicationsPolicyAndGuidance/ DH_109969
  25. 25. Thank you for listening Gary Welch 07725121692