Healthcare Business Connect Lancashire - Procurement workshop
•Download as PPTX, PDF•
1 like•350 views
This document provides a summary of a procurement workshop held on March 22nd 2018. The agenda included discussions on how products are procured in the NHS, who to target for bids, which procurement frameworks and tender portals should be used, what makes a strong bid, and some success stories from SMEs. The workshop covered the pressures on NHS procurement to achieve savings targets, the changing procurement landscape with new category towers and focus on clinical engagement and value-based solutions. Attendees were advised to sell the benefits and cost savings of their products, partner with larger suppliers on frameworks when possible, and target providers over commissioners for most opportunities.
Recommended
More Related Content
What's hot
What's hot (11)
Similar to Healthcare Business Connect Lancashire - Procurement workshop
Similar to Healthcare Business Connect Lancashire - Procurement workshop (20)
More from Innovation Agency
More from Innovation Agency (20)
Recently uploaded
Recently uploaded (20)
Healthcare Business Connect Lancashire - Procurement workshop
- 1. Healthcare Business Connect Lancashire Procurement workshop 22nd March 2018 @lhhub @innovationnwc
- 2. Some introductions . . . • Steve, Jennifer • Glyn, Mandy and Amanda • Key note speaker Brian
- 3. Agenda• How products are procured in the NHS. Brian 20 mins • Who to target – the provider, CCG or STP. Jennifer 15 mins • Which frameworks and tender portals? Glyn 10 mins • What makes a strong bid? Steve 10mins • Some success stories. 3 SMEs 2 mins each • Q&A with the panel. 20 mins
- 4. Procurement in the NHS Brian Mangan Deputy Director NHS NWPD
- 5. Areas covered… • NHS – the bigger picture Carter report GIRFT GS1 adoption Procurement landscape • Pressures on procurement • Issues and challenges selling in to the NHS
- 6. An introduction to NWPD • Create a community • Raising the profile of procurement • Improve transparency & co-ordination • Promote organisational development • Develop supplier relationship management National & Professional NWPD NHS Trusts
- 7. NHS Procurement journey… Profile Impact • Paper based • Transactional • E-Procurement • Strategic “..Lord Carter concluded there were “stark variations” in the quality of care and finances, which were costing the NHS billions”
- 8. Lord Carter report • 5 £Billion savings! • Focus on workforce • Reducing variances between Trusts – Ops & Costs • Intro of Weighted Activity Unit – procedure costs • Development of “Model Hospital” – what good looks like • Trusts will incorporate the agreed “productivity & efficiency opportunity” into financial and operational planning cycle The pressure is on!
- 10. Scan4safety DH – Leading the nation’s health and care Product traceability Mk1 Poor use of space, Obsolescence – clinical time to find product Stock outs?? Consignment stock Off system – managed by red sticker Clinical risk Expired stockDepartmental silo’s
- 12. NHS Procurement route selection NHS Trust Cluster Regional National High Low Complexity of product & Engagement needed to implement
- 13. Procurement landscape NHS Procurement Hubs and buying groups NHS Shared Business Service (SBS) NHS Commercial Procurement Collaborative (NOECPC) NHS South of England Procurement Services Health Trust Europe (HTE) NHS Commercial Solutions NHS London Procurement Programme East of England NHS CPH COCH NHS FT – Commercial Procurement +Trust Procurement Depts >150 NHSSC & CCS Circa 5000 procurement & supply staff Hubs & buying groups
- 14. DH – Leading the nation’s health and care Future operating model A Category Tower is a public or private sector organisation that is responsible for the sourcing of a pre-determined specific logical group of products on behalf of the NHS. Non Medical Tower 11 NHS Hotel Services Tower 4 Orthopaedics, Trauma & Spine, Ophthalmology Medical Tower 3 Infection Control And Wound Care Tower 5 Rehabilitation, Disable Services, Women’s Health & Associated Consumables Tower 2 Sterile Intervention Equipment And Associated Consumables Tower 10 Food Tower 9 Office Environment Capital Tower 7 Large Diagnostic Capital Devices incl. Mobile & Consumables Tower 8 Diagnostic Equipment and Associated Consumables Tower 1 Ward Based Consumables Tower 6 Cardio-Vascular, Radiology, Audiology & Pain Management 11 Category Towers, all to be operational prior to October 2018
- 15. STP/LDS procurement Regional/Cluster • Devo Manc & STPs • £Billion procurement dept • Higher qualified/senior procurement teams • Improved systems/information Local • Focus on stakeholder engagement • Inventory management and standardisation
- 16. Some issues to consider from the national/regional perspective • Transparency - The days of “you’re my special customer” are over..PPIB is here! • National Clinical Programme = Better informed buyers and stakeholders • RCN small changes:big differences – Ramped up and structured approach to clinical engagement • Cost to serve – new models being considered eg Box only • Initially could be price focus with changes in the procurement landscape • Focus on inventory management
- 17. Annual savings target Produce Work plans Framework reviews Challenge suppliers/re- tender Record savings Procurement Pathway savings & efficiency targets Stakeholder and market engagement Value based solutions Output based tendering – value quantified and assessed Contract management & value analysis Value Based Current and future procurement cycles
- 18. Pathway savings example 5000 Procedures per annum Total procedure costs: £4000 10% saving 10% Saving total procedures (p/a) Implant costs £1000 £100 £500,000 Pathway costs £3000 £300 £1,500,000 Total potential savings £2,000,000
- 19. Pressure building on procurement Savings NHSI KPI’s Accreditation DH projects PTPs STPs Job security
- 20. Selling to the NHS……… No magic bullet - Keep it simple →1. Sell benefits - Savings potential inc pathways , Quality of care etc. Don’t over estimate. →2. Be clear on costs – How much will the annual costs be if you win a multi year contract – needed for SFI’s and OJEU →3. Consider risks – what are the consequences or potentially unintended consequences of taking this on – financial, impact on other processes etc →4. Clinical support with MDT approach – get procurement involved early to navigate governance issues. →5. Evolution v revolution an easier sell
- 21. Approach Trust procurement You will be asked Is the product on a framework? • NHSSC, CCS, Hubs, - it is possible “Leanvation case study” with support of AHSN and local Trust • If yes, find out terms of the framework, can it be purchased direct or via mini comp. • If no – can you partner with a supplier who is? Can be the best route in. • If no – and the product/service is “novel” ask would the Trust be willing to pilot? Can be done for 6 months then OJEU. • If no - would the Trust be willing to sign a waiver? Can the supplier demonstrate that it is a unique offering – which will offer sigbificant value. Selling to the NHS………
- 22. So what does this mean in practice? • Pressures to buy at scale – Price focus on consumable “type” products – Can you compete? • Essential to build local relationships • Carter acknowledges challenge more than just price – efficiency and value based procurement will emerge – how does your product/service meet this need? • Are you willing to sub-contract – a dilemma for some? • If you do win a contract can you supply at “scale”?
- 24. Who to target? Jennifer Dodd
- 25. Who to target? •The NHS organisational landscape •The health and care funding system •Deciding who to target and how
- 26. The NHS Organisational Landscape https://www.kingsfund.org.uk/sites/default/files/2017-10/NHS_structure_2017.pdf
- 27. The NHS Funding System https://www.kingsfund.org.uk/sites/default/files/2017-10/NHS_structure_2017.pdf
- 28. A local Funding System NHS England GP practice GMS / PMS contract Local authority Social care Domiciliary care Care homes Other providers CCG NHS Acute Trust NHS Mental Health Trust NHS Community Trust Payment by results Block contracts Contracts for services Self funders
- 29. What does this mean for who to target? • Providers procure products, Commissioners commission services • STPs may have some funds. Integrated Care Systems aren’t real world (yet!) • The org that uses a product may not be the organisation that reaps the benefit • Operational efficiencies vs cost savings • 70% NHS costs are in staff. Incremental changes are not cash releasing for commissioners. • What will your product replace? • The tariff for PbR is available publically. Use it https://improvement.nhs.uk/resources/national-tariff-1719/
- 30. Which frameworks and tender portals you should be registered with. Glyn Jones
- 31. Procurement Portals • NHS • https://nhsengland.bravosolution.co.uk • https://www.supplychain.nhs.uk • https://www.gov.uk/contracts-finder • Standard contracts • OJEU • Tenders Electronic Daily - http://ted.europa.eu • Good for intel – historical records • All stages published – Intention, Tender and Award • Non OJEU is by client/region • NW CHEST - https://www.the-chest.org.uk
- 32. Frameworks • Tender of tenders • Normally won by larger suppliers e.g. Insight • Quicker for customer to use as it avoids running lengthy full tendering exercises • Maybe single supplier(!) • Best option for SME is to partner with the large suppliers • Great if you have a complimentary niche • There is a cost
- 33. Access
- 34. What makes a strong bid? Steve Adams
- 35. Here’s the basics . . . •Know your topic! Be compelling •Know your audience! Be persuasive •Practice! Be prepared
- 36. Some tips and tricks • It the topic is boring – make it interesting! • If its complicated – make it simple • Use data and evidence to be compelling • Seat belts save live’s. Fact! • Use stories and examples to be persuasive • Make sure your kids always were their seat belts • Be authentic • Invite the audience to remember 3 things
- 37. The application • Answer the questions in the bid template • Consise without spelling mistakes • Not repetitive • Highlight benefits • Include stories/ quotes from service users or staff
- 38. The interview • Take a beneficiary who can tell the story e.g. service user or staff member • A presentation doesn’t need to be on screen – bring equipment, visual aids etc • Be ready to discuss the next steps for the issues outlined in your application • Reference any organisations you have worked with
- 40. Some success stories • 2-3 SMEs 2 mins each.
- 41. Q&A with the panel
- 42. What 3 key points will people take away from this workshop?
- 43. Thank you! • Steve Adams 07772 357 948 steve.adams@innovationagencynwc.nhs.uk • Glyn Jones 07773 941 574 r.g.jones@lancaster.ac.uk
Editor's Notes
- WE HAVE A NUMBER OF OBJECTIVES FROM CREATING A COMMUNITY RAISING THE PROFILE OF PROCUREMENT, BUT PERHAPS THE MOST CRITICAL ONE IS THE NEED TO SUPPORT TRUSTS DELIVERING THE NATIONAL AGENDA AND DRIVE ADDRESS THE SAVINGS CHALLENGE.
- SOME OF THE HIGHLIGHTS FROM THIS ARE…. AS ONE OF THE WORLDS LARGEST EMPLOYERS HE IS LOOKING AT WORKFORCE AND MANY OF YOU MAY HAVE SEEN ARTICLES IN THE PRESS ABOUT AGENCY SPEND AND THE NEED TO CONTROL
- Speaking notes: There is no right way to cut these up But we have been through a long process of engagements with our customers that have informed this division In this process we kept on coming back to this arrangement
- AHH GONE ARE THE DAYS OF THE NDA’S AND YOU’RE MY SPECIAL CUSTOMER…THERE ARE A FEW SUPPLIERS STILL TRYING TO IMPLEMENT THIS BUT THE PRESSURE IS ON BY THE DH TO MAKE SURE THIS DOESN’T HAPPEN AND TRUSTS ARE COMING ROUND TO THIS – IN THE NW WE HAVE AN AGREEMENT WITH ALL OUR MEMBER TRUSTS TO SHARE INFORMATION BETWEEN THE GROUP AND WE’VE FOUND IN MANY AREAS THAT ITS BEEN EXTREMELY POWERFUL, WITH NO CORRELLATION BETWEEN PRICE AND VOLUME – WITH THE INCREASE IN TRANSPARENCY I BELIEVE ITS POTENTIALLY DAMAGING FOR SUPPLIERS WHO CAN FAIL TO FULLY JUSTIFY THERE PRICING POLICIES. WORK IS BEING DONE ACROSS THE UK TO DEVELOP SYSTEMS THAT CAN ENSURE DATA CAN BE SHARE MORE ACCURATELY AND EFFECTIVELY. TIM BRIGGS LEAD THE WORK ON GETTING IT RIGHT FIRST TIME WHICH HE COLLECTED COMMERCIAL AND CLINCAL DATA ON PRIMARY HIPS AND KNEES AND VISITED EVERY TRUST TO DISCUSS THE FINDINGS – IN ESSENCE HE TOO FOUND VARIATION IN PRACTICE AND PRICING – THIS HAS GIVEN TRUSTS THE OPPORTUNITY TO LOOK OPEN DISCUSSIONS WITH THEIR SUPPLIERS AND CLINICIANS AND ITS MY UNDERSTANDING THAT OTHER KEY AREAS OF SPEND WILL BE LOOKED AT IN THE SAME WAY. SO HERE TO YOU MAY WANT TO REVIEW YOUR OWN PRACTICES AND PRICING TO SEE WHAT THE IMPACT WOULD BE IF YOU WERE CHALLENGED
- CURRENTLY THIS IS OUR PROCUREMENT CYCLE…CYCLE OF DOOM AS I HAVE AFFECTIONATELY COME TO REFER TO IT. FROM THE RESEARCH THE SUGGESTION IS THAT WE SHOULD MOVE TO A MORE HOLISTIC APPROACH ONW THAT IS….LALAA
- Statutory bodies Split into commissioners and providers. Commissioners (planning and buyers, place contracts with a range of different providers – NHS and non-NHS – for delivery of front line care) commissioners CCGs – 209 CCGs NHS England – 4 regional teams (many more “Directors of Commissioning Operations”) LA - 152 Local authorities. GM Health and Care Partnership - From April 2016, leaders in Greater Manchester have taken greater control of the region’s health and social care budget. This includes taking on delegated responsibility for several commissioning budgets previously controlled by NHS England. Providers NHS Trusts and Foundation Trusts – include acute trusts (hospitals), mental health trusts, community trusts (district nursing etc). Voluntary sector – hospices, Age uk, Macmillan, local groups GPs and other primary care – eg pharmacists, dentists, opticians etc. Regulators – CQC and NHS I. NHS E have a role in regulating CCGs Other, non statutory bodies STP - Since December 2015 NHS providers, CCGs, local authorities and other health care services have come together to form 44 STP ‘footprints’. These are geographic areas that are coordinating health care planning and delivery, covering all areas of NHS spending on services from 2016/17 to 2020/21. Charged with making sure changes that span more than one provider/commissioner relationship are delivered. Across this wider footprint ensuring that variation is reduced and that systems are as efficient as possible. Also have a specific role in terms of estates Accountable Care Systems – moving to Integrated Care Systems. New model of delivering care, integrating delivery of care and aligning incentives without the need for a legislative change. They are areas where commissioners and NHS providers, working closely with GP networks, local authorities and other partners, agree to take shared responsibility (in ways that are consistent with their individual legal obligations) for how they operate their collective resources for the benefit of local populations May also hear integrated care organisations – a new provider entity, capable of holding a population health budget. None of these exist yet.
- Here we see the commissioner/provider split. NHS England passes most of the money it gets from DH onto CCGs – who commission services from NHS Trusts, and other bodies. NHSE does hold some money back for “directly commissioned services” – primary care and specialised services. From April 2017, all CCGs have assumed some responsibility for commissioning primary medical care services. Sixty-three have taken on full delegated responsibility (delegated commissioning); the rest have joint responsibility with NHS England (co-commissioning) NHSE also commissions some public health services – mainly immunisations, vaccinations and screening. Other Public health services (sexual health services, health checks programme, child measurement programme and locally determined health improvement – drug and alcohol services, smoking cessation, obesity and weight management, physical activity etc) Better Care Fund – is a mandatory pooled budget between NHS and LA, ostensibly to drive integration of services. In fact it is far too small to do this effectively.
- So how does the money flow round a local system. There is one “national standard contract” that is used between CCGs and NHS Trusts. There are different payment mechanisms – acute trusts are paid on an activity based pricing system – called Payment by Results (or PbR). Works on a national tariff. Mental health and community trusts are paid on block contracts, NHS England have two types of contracts with GPs – General Medical Services (GMS), Personal Medical Services (PMS). GP contract is defined in primary legislation, negotiated nationally by the BMA. GP Partners hold their contract in perpetuity. Local Authority – commission social care packages, domiciliary care and care homes. These services are based on means testing and there is a significant amount of self funders in this market. The upshot is – it is complicated.