Trauma orthopaedics - do nothing and still save 9.7%, or change suppliers and save 35.5%
Proactive procurement and clinical engagement has seen savings from the Trauma Orthopaedic and Maxillofacial Implants, Accessories and Associated Consumables framework average more than 25 per cent for participating trusts.
This compares with original predictions of a 10 per cent average – and where trusts are changing to a single supplier, savings are up to 35.5 per cent.
In late 2012, LPP had identified that there was no collaborative agreement in place for the purchase of trauma orthopaedics products by NHS trusts. This was an opportunity for LPP to work with members to develop the Trauma Orthopaedic and Maxillofacial Implants, Accessories and Associated Consumables framework, which went live in October 2013.
Prior to this, each trust had run its own tendering and contracting process for trauma products. LPP took its members’ spend to market to introduce competition into the market and increase the savings potential for trusts as suppliers submitted bids for various spend bands.
Following expressions of interest, invitations to tender were issued in early summer 2013. Responses were received from all suppliers invited to respond, and the tenders were evaluated by an LPP panel, including clinical evaluation provided by Peter Bates, Trauma Consultant at Royal London Hospital. Peter’s team provided an overall assessment of clinical acceptability before suppliers were awarded places on the framework.
Following evaluation, all the top trauma orthopaedic suppliers were awarded a place on the framework, giving trusts access to quality products while benefitting from the savings that a collaborative approach offers.
In addition to producing significant savings, using the framework frees up resources at individual trust level. Trusts no longer need to carry out their own OJEU processes, but can now purchase quickly and compliantly through the LPP framework agreement.
To get such a rapid level of participation by trusts once the framework was ‘live’, LPP worked proactively with local procurement teams and clinicians to assess the benefits available to their trusts, and ensured that contract awards were completed with the backing of appropriate clinical departments. Where a change of supplier occurred, LPP acted as the point of contact for both the trust, including the procurement teams and clinicians, and the supplier.
Do nothing, and save 9.7% - or change and save 35.5%
The results are impressive. In its first two months, six trusts had signed access agreements under the framework, producing total combined annual savings for the six of £1.3 million (an average saving of 25.3 per cent). Additional trusts are now accessing the framework as their existing contracts gradually expire. Levels of savings differ on a trust by trust basis depending on current suppliers and usage levels, but the average saving identified for all participating trusts is currently 23 per cent.
Significant savings have been identified for trusts on an ‘as is’ basis – where a trust stays with its current suppliers. Those savings, however, become far more significant when a trust is prepared to move to a single supplier, as LPP’s analysis for individual trusts is demonstrating. One LPP member, for example, will save 9.7 per cent by remaining with its current suppliers, but this grows to 35.5 per cent if it decides to move to a single supplier.
A major London trauma centre made the move away from its incumbent arrangements to a single supplier, and as a result maximised its savings potential. As a result of this change the Trust will make savings of 29.8 per cent – equivalent to more than £500,000 - in the first 12 months of the framework. LPP has worked closely with the procurement team at the Trust and the clinicians involved with this process to ensure that any supplier change will be successful. Regular meetings are held with the Trust and the supplier to carefully monitor the process and to highlight and resolve any issues that have occurred.
Potential savings of around £110,000 have been identified on an ‘as is’ basis for another trust using the new framework. Greater savings have been identified through product switching and LPP will work closely with this member over the next 12 months to implement any potential savings.
This framework, which covers all products within the Trauma and Maxillofacial portfolio, is open to all LPP members. Getting such an impressive early uplift on predicted savings clearly demonstrates how vital collaborative procurement with clinical engagement is to supporting the NHS to cut costs without compromising on quality.
Open to: all NHS London Procurement Partnership members
Dates: from 21st October 2013 to 20th October 2015, with the option to extend for a further 2 x 12 month possible extensions, until a maximum possible end date of 20th October 2017
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