A ‘lack of transparency ‘in the market, leaving NHS Trusts in England ‘unable to make cost-efficient decisions about purchasing supplies’, is seeing such organisations ‘pay over the odds’ for everyday products, costing the taxpayer ‘an unnecessary £500 million each year’, say Ernst & Young and the product comparison website for the NHS, Peto.
They argue that, unless current procurement practices are reformed to ensure that data is ‘fully shared’ across the NHS, ‘price variations’ could cost a further £1 billion over the next two years. Their research, ‘based on an independent update and analysis of spending figures across 10 NHS Trusts’, showed that:
• The same box of medical forceps is purchased for £13 by some Trusts, but others pay up to £23.
• The average price for adult warming blankets is £60 for a box of 10, but some Trusts pay up to £124 for the same box.
• Knee implants can be purchased for up to £1,109, when average price paid by Trusts is £787.
Ernst & Young said: “The statistics come two years after the National Audit Office and the Foundation Trust Network pointed out significant variations in the prices paid by different NHS Trusts for the same products. Today’s figures highlight that the situation has not improved, with some Trusts paying over twice the average price for essential items like warming blankets.” Joe Stringer, partner at Ernst & Young (pictured), said: “There is a widespread misconception that price disparity is the inevitable consequence of policy decisions to encourage competition between NHS providers. With the NHS facing sustained pressure to contain rising costs and demand within a flat budget, transparency must be introduced across the board.” Julian Trent, MD of Peto, said: “The Government’s current review of procurement practices must put an end to unethical charging within the NHS, so that Trusts can purchase supplies of best value and quality.”
