The future of procurement in the NHS - part 2

There is much that the private sector can bring to the public sector within procurement.

The private sector is better positioned to look further into the future, think more about the overall value driven through good procurement and follow through with robust contract management.

Interims with experience in both the private and public sector can bring enormous value. 

They are familiar with how the public sector operates, the regulatory environment, and the procurement frameworks. And, they have seen and done things differently in the private sector, where contract management plays a big role.

Experienced interims can have instant impact. They can move the dial.

This is the second of our blogs on the future of NHS procurement written following a discussion with Richard Woodard. A senior Interim Procurement Contractor currently working with an NHS Trust through Boston Hale, he has worked on multiple contracts within the NHS and in the private sector.

The value of contract management

Contract Management plays an integral role within the procurement department of private sector companies. But, the role is largely absent within the public sector where, once a tender has been managed and a contract agreed, it’s left alone.
In the private sector, a Contract Manager will take over at this point and will oversee it for the duration. Richard says:

Contract Managers will make sure the contract is running smoothly – the price is stable, quality is consistent, KPIs and SLAs are met, discounts are properly applied, new products and innovations are shared.

In an organisation that employs a contract management approach, when an issue arises, it is identified early, such as through end-user reports, and managed through a process. Once flagged, the Contract Manager will work closely with the supplier to try and rectify the issue – whether it be price increases or supply chain shortages.

Without contract management in place, issues take longer to surface and may only come to light when it’s too late to avert. The product just stops getting delivered or the bill comes in with a price hike. The issue is then more difficult to resolve.

In the NHS, that may mean patient care is affected. For example, if supplies of an important product are interrupted, continuity of care may be too. 

A Contract Manager can anticipate issues, put contingency plans in place, group contracts together for efficiency and prevent unforeseen costs.

Using consultant procurement professionals

As always, cost and value for money is a big focus within the NHS. 

Some NHS Trusts have been trialing a contract management approach to procurement, with fantastic results.

However, to roll this out across more Trusts, more staff are needed. The NHS is suffering staff shortages in many departments, not just procurement. The spotlight has been put on the cost of hiring interims and consultants in the NHS, resulting in Trusts having to complete fully justified business cases to access specialist staff. This is a lengthy process which doesn’t always result in budget approval. 

But there are huge benefits to hiring consultants and contractors.

They are skilled, experienced, objective and able to get things done. 

People in the organization know you’ve been around and can deliver. They understand you know what you’re talking about and have done it before. They expect more from you. It can become robotic, going through the same process with resistance to change. Consultants can bring in new, better ways of doing things, solve problems and teach the incumbent team.

Interim consultants are tasked with, and measured on, delivering work. 

Richard manages his time carefully and makes sure people know why he is there and what his remit is. If he’s asked to attend a meeting, he will ask for the agenda and assess its relevance before accepting.

As an interim, you are judged purely on pushing work through. Your reputation will grow if you can successfully do that and achieve great results. You don’t have to get involved in longer term projects or politics.

Interims have a clean slate. They can be single-minded, bypass politics, swerve unproductive meetings, tread on toes, shake things up – they are simply focused on getting results.

Better outcomes

Rather than just being viewed as a ‘cost’ to the NHS, interim consultants working in procurement could be seen as an opportunity.

Experienced interims bring a wealth of experience and new ways of doing things, helping the NHS to modernize its procurement processes, to save costs and build robust supply chains for the future.

As more and more NHS Trusts start to understand the benefits of good procurement, the hope is that they will be able to embed practices such as contract management, and move from a reactive position to a strategic one. 

And, if procurement practices improve, issues will be resolved quickly, supply will be consistent, good processes will guarantee objectivity and innovation, public money will be spent well, driving value and good outcomes.

That will mean clinicians have more time to focus on providing care, knowing that they are better placed to deliver positive outcomes for patients.

 

This blog was written following a discussion with Richard Woodard, Senior Procurement Interim. Read the first part here

To find out more about how we can help with your procurement hiring, contact Marie O’Driscoll

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