Achieving Efficiencies , Delivering Value and Making S avings

Achieving Efficiencies, Delivering Value and

Making Savings

Emma BirchallAssociate Director of Informatics

East Lancashire Hospitals NHS Trust

East Lancashire Hospitals NHS TrustOur

Location

East Lancashire Hospitals NHS TrustOur

Population

530,000Areas of significant deprivation

Areas of significant affluence

High levels of admission for alcohol-related illness

Lower life expectancy than England average

East Lancashire Hospitals NHS TrustOur

Services• 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

Our Estate

Royal Blackburn Hospital Burnley General Hospital Accrington Victoria Community Hospital

Clitheroe Community Hospital Pendle Community Hospital

Over 20 Community Sites

East Lancashire Hospitals NHS Trust

Our IT Strategy

InfrastructureClin

ical

IT

Pap

er-Lite

EPR

East Lancashire Hospitals NHS Trust

Financial Context

• 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 TrustEfficiencies 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

Dela

y

IT Procurement Process

East Lancashire Hospitals NHS TrustEfficiencies 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 TrustEfficiencies 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 TrustDelivering 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 TrustDelivering 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 TrustMaking Savings

Based on the top ten printer consumables…..

• Covering 2,782 purchases• An expenditure of £94k

NPC EClass Desc Section Brand MPC UoIRequsition type

Qty supplied

Total demand(£) Our Cost Channel

Channel + 3%

Revised Total Saving

WYF1665 WAT

Cartridge laser black remanufactured Compatible for use in Hewlett Packard Laserjet P2035/P2050/P2055D/N equivalent to CE505A. 494-4689

Ink and toner 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

WYM1673 WAT

Cartridge laser black For use in Hewlett Packard Laserjet p3015dn/d/x. CE255A. 536-9794

Ink and toner 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

WYF1884 WAT

Cartridge laser black remanufactured Compatible For use in Hewlett Packard Laserjet p3015dn/d/x equivalent to CE255A

Ink and toner 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

East Lancashire Hospitals NHS TrustMaking 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 TrustMaking Savings

And that’s only printer consumables!

Recent Savings:

Item Highest Quote

Lowest 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

EfficiencyValueSavings

Any Questions?