Procurement & Distribution
Interest Group Symposium
10th June 2010
Beth Loudon – Business Development Manager
 What is the NHS Commercial Medicines Unit?
 What is our role and governance?
 What is a Commercial Support Unit (CSU) and
what is its potential role in medicines
 How is the procurement landscape developing
for medicines management?
NHS CMU – Who?
A team within PICD (Procurement, Investment and Commercial
Division) at Department of Health from 1st January 2010.
Previously Pharmacy Directorate of NHS Purchasing and Supply
Agency, roles and responsibilities remain unchanged.
Teams in Reading and Runcorn and 11 Homeworkers
Core purpose is to:
deliver efficiencies for the NHS and DH in the procurement of
support purchasing for safety of those medicines
ensure an efficient and effective supply chain of medicines to
the patient.
NHS CMU Governance
Department of
Health –
Investment and
(Peter Coates)
Chris Theaker – General Manager
Teams based in Runcorn and Reading
We deliver efficiencies through:
the delivery of national and regional contracts for medicines for
secondary care in the NHS
the delivery of best value on all DH central procurement of
medicines, including vaccines and flu pandemic products
the use of our unique national spend and usage data collection
system, to provide information and analysis to identify efficiency
opportunities available to the NHS and DH, and to support them in
measuring and reporting on those efficiencies
the offer of supply chain efficiency opportunities to the NHS e.g.
improvements in purchase-to-pay systems
We support purchasing for safety of those medicines through:
a bespoke quality control system (PharmaQC) which provides a
route from supplier to pharmacist for product safety and quality
working closely with the national QC group to ensure all contracted
products have been QC approved
ensuring safety considerations are a core criteria in the design and
award of our contracts
close relationships with the National Patient Safety Agency to
ensure that we are supporting the DH in the implementation of
the use of our professional networks and communication routes to
ensure that secondary care pharmacists are instantly aware of any
safety alerts
Supply chain
We ensure an efficient and effective supply chain of medicines to
the patient through:
arranging the storage and distribution for centrally procured
analysing the national usage data to forecast and plan for shortages
in partnership with the Medicines and Pharmaceuticals Industry
Group (MPIG)
the use of our relationships with industry to influence the supply
chain of medicines and their raw materials, to ensure that we can
scenario plan for shortages and put contingencies in place
What are Commercial
Support Units (CSU)?
 Set up in each region and began operating
from April 2010
 Aim is to build commercial skills within the
NHS by improving commercial acumen and
enabling the NHS to drive up quality and
facilitate efficient use of resources
 They will work with established local
structures to determine the best collaborative
approach to meet the commercial
What will a CSU do?
Key functions
might include
Key functions
for Providers
might include
• Developing effective patient and public engagement to inform decisionmaking
• Using information effectively to make investment decisions
• Using innovation to improve quality and reduce cost
• Managing and developing suppliers effectively
• Actively managing contractual performance
• Undertaking service review
• Procuring services and using contractual levers to drive productivity
Developing a thorough understanding of NHS markets
Using patient and public involvement to inform developments
Identifying business opportunities
Understanding effectiveness and cost structures of existing
organisational arrangements
• Having clear and consistent systems that measure quality and value for
money of all services
• Securing business and income
• Using innovation to improve quality and reduce cost
The CSU National
Pharmacy Workstream
 To address the following key questions:
-What are the gaps in the provision of support for achieving
optimal commercial effectiveness in the use of
-How could a CSU deliver services to fill these gaps?
Work has been undertaken in 4 regions (London, South Central,
West Midlands and North West) to support SHA and CSU
leads in developing greater insight and guidance on the role of
CSUs in enabling commercially effective use of
Key stakeholders were identified in each region and 1-2-1
interviews were carried out with a workshop to follow up.
Output is in final draft under consultation
Emerging themes….
Draft Medicines
Management Functions….
Associated services
Prescribing and spend analysis (including opportunity
Business Intelligence and
Scenario modelling
Facilitation of
Collaborative Working
Opportunity identification
Implementation support
for national strategies
Baseline analysis
Project management support for collaboration
Resource modelling
Audit support
Adoption of Best Practice
and Innovation
Identification of best / innovative practice
Benefits tracking for best / innovative practice
Facilitation of sharing materials associated with best
Operational performance
Clinical productivity and efficiency assessments
Medicines management capability assessments
E-enablement opportunity identification
E-enablement implementation support
Market Management
Contract management support
Homecare provider management
How is the procurement
landscape changing?
 Increased emphasis on commercial rather
than procurement tasks and activities
 Skills required beyond traditional
 Increasing efficiency targets leading to…
 Increased pressure on the procurement
 More appetite for radical solutions