Sandwell’s approach to
Integrated Procurement Hub (IPH)
for Community Equipment
ADASS – West Midlands Region
The focus on support in the
Community & Cost of Equipment
• DH recognised the challenges of the
care at home policy and th...
The complex equipment service is facing runaway growth in
demand with the shift in the demographic make-up and escalating
...
West Midlands Regions – Activity & Spend
Activity
Spend – Social Care &
health
DH Strategy to develop the IPH opportunity ...
The DH National Business Case found that the market suffered from a
lack of competition (too few contractors and a high de...
The IPH Service Proposition
“a menu of services”
1. Whole Service
2. Procurement, Purchasing & Operations
3. Procurement &...
Sandwell is signed up.
The initial review with Sandwell has
identified a projected saving on
procurement only through the ...
Next Steps
• Meet with Local Authorities that
are interested in more
information and opportunities to
save money
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Sandwell's approach to Integrated Procurement Hub (IPH) for Community Equipment

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by Chris Guess, Sandwell Council

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Sandwell's approach to Integrated Procurement Hub (IPH) for Community Equipment

  1. 1. Sandwell’s approach to Integrated Procurement Hub (IPH) for Community Equipment ADASS – West Midlands Region
  2. 2. The focus on support in the Community & Cost of Equipment • DH recognised the challenges of the care at home policy and the costs. • DH recognised the importance of equipment to support demand management and total life costs. • DH modelled the options and created the IPH, Croydon were appointed host.
  3. 3. The complex equipment service is facing runaway growth in demand with the shift in the demographic make-up and escalating equipment and service costs brought about by a stagnant marketplace with too few contractors • £35.5m pa total cost of provisioning the Equipment service in the West Midlands • £18.8m pa are current operating costs of the 14 Local Authority and NHS Equipment Service Warehouse / Stores • £28.7m of Complex Aids were issued in the West Midlands (based on 2010/2011 figures) • 83% of Complex Equipment Product Costs = £23.8m is spent on only 4 Product Categories: • Over 65’s to increase by 35% to 1.28m by 2030 Hoists & Lifts = 35% / £10.1m pa Beds = 24% / £6.9m Mattresses = 12% / £3.4m Rise recliners = 12% / £3.4m The population of the West Midlands over the age 85 is projected to increase by over 120% by 2030
  4. 4. West Midlands Regions – Activity & Spend Activity Spend – Social Care & health DH Strategy to develop the IPH opportunity by Region
  5. 5. The DH National Business Case found that the market suffered from a lack of competition (too few contractors and a high degree of vertical integration with suppliers). It went on to recommend a shared approach through a common procurement strategy. To manage demand authorities must rethink the traditional commissioning approaches by direct intervention in the market to stimulate greater competition and better value
  6. 6. The IPH Service Proposition “a menu of services” 1. Whole Service 2. Procurement, Purchasing & Operations 3. Procurement & Purchasing 4. Procurement only 5. Deliver equipment and / or services as part of ‘Hub & Spoke’ 6. Opportunity to Hire Short Term Equipment 7. Option to Commission Added Value IPH Services – Telehealth, Telecare The IPH offers multiple ways to become a customer with clear benefits for each service chosen!
  7. 7. Sandwell is signed up. The initial review with Sandwell has identified a projected saving on procurement only through the IPH of: • £325k per annum (29%) on a total spend on new equipment of £1.12m per annum currently. The IPH offers multiple ways to become a customer with clear benefits for each service chosen!
  8. 8. Next Steps • Meet with Local Authorities that are interested in more information and opportunities to save money

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