New purchasing systems could save NHS £200million

A new purchasing framework could save the NHS over £200m in procurement costs and will help upgrade hospitals more quickly, Health Minister Simon Burns announced today.

Burns says the new Procure 21 framework will streamline and simplify the process for NHS Trusts when procuring a construction company to carry out hospital refurbishments or new builds.  

It will also usher in a more transparent system, where detailed data on performance outcomes will be provided by each company and published online, so that the NHS can make informed choices about the companies they employ.

Six companies have been approved for the new system to deliver NHS projects, meaning that NHS Trusts do not need to go through the complex European Union procurement process.

NHS Trusts can now choose from six approved companies: 

    * Balfour Beatty Group Limited
    * Healthcare Partnership Solutions Ltd
    * Integrated Health Projects
    * Interserve Project Services Limited
    * Kier Regional Ltd
    * Willmott Dixon Holdings Ltd

This builds on the existing Procure 21 framework, which, although voluntary, has become the most popular procurement route for NHS capital schemes and has delivered successful projects, with a value of almost £2 billion.

Health Minister Simon Burns said:

“The benefits of Procure 21+ are clear – a streamlined system will mean that NHS organisations will be able to concentrate on delivering patient care and improving outcomes.

“The new system will cut bureaucratic waste and allow the NHS to reinvest savings directly into services for patients.

“Hospital refurbishments under this system will be quicker and more cost effective, ensuring that patients receive their treatment in a clean, safe and efficient environment – as they would expect.”

Under the new framework, work can start on projects within six weeks, saving the NHS at least six months in the pre-construction period.

The appointments will take effect when the new framework commences on 1 October 2010 and will run for a six-year period.