Achieving Efficiencies, Delivering
Value and Making Savings
Emma Birchall
Associate Director of Informatics
East Lancashire Hospitals NHS Trust
East Lancashire Hospitals NHS Trust
East Lancashire Hospitals NHS Trust
Areas of significant deprivation
Areas of significant affluence
High levels of admission for alcoholrelated illness
Lower life expectancy than England
average
East Lancashire Hospitals NHS Trust
• We employ 7,000 Staff
• Over 600,000 patient contacts a year from the most serious of
emergencies to planned operations and procedures.
• We provide a full range of acute hospital and adult community services.
• We are a specialist centre for hepatobiliary, head and neck and urological
cancer services, in addition to providing specialist cardiology services and
a network provider of Level 3 Neonatal Intensive Care.
• We offer care across five hospital sites, and various community sites, using
state-of-the-art facilities.
• We have a total of 996 beds:
• 631 beds at the Royal Blackburn Hospital
• 241 beds at the Burnley General Hospital
• 33 community inpatient beds at Clitheroe Community Hospital
• 19 community inpatient beds at Accrington Victoria Hospital
• 72 community inpatient Pendle Community Hospital
East Lancashire Hospitals NHS Trust
Royal Blackburn Hospital
Clitheroe Community Hospital
Burnley General Hospital
Over 20
Community
Sites
Accrington Victoria
Community Hospital
Pendle Community Hospital
East Lancashire Hospitals NHS Trust
East Lancashire Hospitals NHS Trust
• Trust Income of £420m
• 5% Cost Improvement Programme
• IT Capital Budget of £1.5m
• IT Revenue Spend of £860,000 (Equipment – 2013/14)
• Current IT Revenue Spend of £500,000 YTD (2014/15 to M6)
East Lancashire Hospitals NHS Trust
&
How are we achieving efficiencies,
delivering value & making savings?
Achieving Efficiency:
Improving how time, effort or
cost is used within the current
service
Delivering Value:
Delivering an additional
service not expected from
the current business
Making Savings:
Reducing the amount of
expected expenditure within
the organisation
East Lancashire Hospitals NHS Trust
Efficiencies in Procurement
1
•Assess Requirements
2
•Request Quotations
3
•Chase Quotations
4
•Receive Quotation & Quote Service
5
•Place Order
6
•Take Delivery/Install
7
•Recharge Service
East Lancashire Hospitals NHS Trust
Efficiencies in Procurement
1
•Assess Requirements
2
•Request Quotations
3
•Quote Service
4
•Place Order
5
•Take Delivery/Install
6
•Recharge Service
East Lancashire Hospitals NHS Trust
Efficiencies in Procurement
Impact of Using KnowledgeBus IT Edition
• Reduced procurement timescales by 1/3
• Streamlined processes so all procurement
information is available through a single source
• Channel Prices
• Stock
• Frameworks
• Improved intelligence
• Stock levels
• Price rises/drops
• Supplier quarter ends
East Lancashire Hospitals NHS Trust
Delivering Value
Business Case Proposals – Providing Additional Services to the Trust
Printer Consumables:
• All purchased via NHS Supplies
• All purchased direct by individual departments
• 2013/14 annual spend - £362k over 11,000 items
Current Process
• Devolved ordering
• Multiple staff
• Inefficient
East Lancashire Hospitals NHS Trust
Delivering Value
Business Case Proposals – Providing Additional Services to the Trust
The Proposal
• Transfer ordering of printer consumables to IT
• Achieve economies of scale with suppliers
• Achieve significant net savings through KnowledgeBus IT Edition
Benefits to the Trust
• Reduction in ordering administration
• Deliver on a key objective for staff
• Reducing inefficient processes
East Lancashire Hospitals NHS Trust
Making Savings
Based on the top ten printer consumables…..
• Covering 2,782 purchases
• An expenditure of £94k
NPC
Brand
MPC
UoI
Requsition type Qty supplied
Total
demand(£)
Our Cost
Channel
WAT
Cartridge laser black remanufactured Compatible
for use in Hewlett Packard Laserjet
P2035/P2050/P2055D/N equivalent to CE505A. Ink and toner
494-4689
cartridges (ST)
My Brand
REMCE505A
Each of 1
Value-Only
transactions
481
£10,788.92
£22.43
£16.00
£16.48
£7,926.88
£2,862.04
WAT
Cartridge laser black For use in Hewlett Packard Ink and toner
Laserjet p3015dn/d/x. CE255A. 536-9794
cartridges (ST)
Hewlett Packard
CE255A
Each of 1
Online Ordering
465
£37,941.31
£81.59
£76.49
£78.78
£36,634.89
£1,306.42
WAT
Cartridge laser black remanufactured Compatible
For use in Hewlett Packard Laserjet p3015dn/d/x Ink and toner
equivalent to CE255A
cartridges (ST)
Supplies Team
REMCE255A
Each of 1
Online Ordering
268
£10,395.04
£38.79
£28.00
£28.84
£7,729.12
£2,665.92
EClass
Desc
WYF1665
WYM1673
WYF1884
Section
Channel +
3% Revised Total
Saving
East Lancashire Hospitals NHS Trust
Making Savings
Revised Expenditure:
• £81k from £94k
• £13k saving across 10 products
• 14% saving
Potential Additional Saving:
• Remaining £268k annual expenditure
• At 14% - £38k saving (Total £51k)
• At 10% - £27k saving (Total £40k)
East Lancashire Hospitals NHS Trust
Making Savings
And that’s only printer consumables!
Recent Savings:
Item
Highest Lowest
Quote Quote
Budget
Price
No.
Bought
Saving
Achieved
Laptop
£1,561
£853
£1,048
33
£6,435
Fuser
£102
£101
£168
9
£603
Headset
£160
£151
£203
19
£988
Total Saving: £8,026
East Lancashire Hospitals NHS Trust
Any
Questions?