University of Bath School of Management University of Bath School of Management

A Strategic Approach to Public Procurement

A Strategic Approach to Public Procurement

University of Bath research has helped the National Health Service (NHS) successfully make fundamental changes in its procurement policy, with 2.7 per cent savings on £18 billion of expenditure. The changes incorporated plurality of provision and strategic, collaborative approaches to deliver better value-for-money decisions and improve quality of life for patients. Using this framework, Audiology Services have been able to provide digital hearing aids to patients free of charge, at the same time saving £252 million on the purchasing price of the aids and cutting service costs by £45.5m annually.

This approach was also applied across all NHS expenditure categories and achieved savings of around £500m on goods and services worth £18 billion a year. The research has also shaped the Department of Health's Commercial Strategy encouraging a more strategic use of network resources for the benefit of patients and taxpayers.