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Benchmarking the future

Benchmarking the future. Lorraine Bewes Director of Finance Chelsea & Westminster Hospital NHS Foundation Trust Alex Hyde Business Analyst Pi Benchmark Ltd. Supported by. Have you heard the news?.

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Benchmarking the future

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  1. Benchmarking the future Lorraine BewesDirector of FinanceChelsea & Westminster Hospital NHS Foundation Trust Alex HydeBusiness AnalystPi Benchmark Ltd Supported by

  2. Have you heard the news? “Information on what products trusts buy and the prices they pay is poor. We agree with the Department that better information would enable effective benchmarking of products and prices, while increased transparency would help to reduce prices through competition.” Source: House of Commons Committee of Public Accounts, 35th Report of Session 2010-12 “We must make the best possible use of the huge spending power the NHS has. The NHS must share data so we can see the prices that different organisations are paying for the same goods and services, and it must do more to make collaborative procurement a reality.” Source: Sir David Nicholson, NHS Chief Executive, NHS Procurement: Raising our Game. June 2012 Supported by

  3. Orthopaedic margins ripe for challenge * Research & Development ** Selling, General and Administrative Expenses Supported by Source: “Orthopaedic Companies”, 600bn, available at: www.600bn.com

  4. …and more recently “Trusts are reluctant to share information over the fear of helping their competitors. With the NHS facing sustained pressure to contain rising costs and demand with a flat budget, transparency must be introduced across the board. The consequences of inaction in the back office will only be felt more acutely in front-line care.” Source: Joe Stringer, Partner, Ernst & Young, November 2012 “We need to drill down into how we could actually do things better by linking up with organisations with particular skills and experience.” “Price alignment could dilute the best prices received by our Trust.” “We would share freely within LPP so long as rules are in place.” “Analytics capability and functionality has improved significantly in the past 2 years.” “On occasion my Trust can be sensitive about sharing prices.” “There needs to be some analysis to explain the variations.” Supported by Source: LPP Benchmarking Survey, November 2012

  5. So what’s the problem? Data Systems People Supported by

  6. Our journey Supported by

  7. Our review New Service Supported by

  8. The new benchmarking service Optional Benefit Delivery & Realisation Service Supported by

  9. The devil is in the detail Savings Opportunity £531,000 Supported by Recent example of savings achieved through analysis: Orthopaedics & Spinal Frameworks

  10. An example: a ceramic knee component 196040300 SIGMA PS CEM FEM £607 variance £59,392 Understand the variance Comparison against contracts Include external factors Recalculate the opportunity Organisation £30,485 Supported by

  11. StrykeFlow 2 Irrigation Device Supported by

  12. Pi Demonstrating the “How” Supported by

  13. Value proposition Problem Solved Quantified Value Our new service addresses the gap in meaningful Procurement information by pooling analytical resource and aims to enable members to drive value through price alignment and process efficiency. With all members engaged, the service is targeted to deliver a 4:1 return on investment over three years (£6.4m) and to drive opportunity assessment for all of LPP’s initiatives. Supported by

  14. A challenge for you! This service is for you. To help you drive value that will benefit patients. We all need to collaborate and provide our data in a timely manner to benefit. LPP and Pi Benchmark will do all the heavy lifting, enabling you to concentrate on your core business This is best practice procurement, which will drive savings opportunities no matter what type, size and location of your organisation. How can you use it to its fullest potential? Supported by

  15. Questions? For more information… Visit the Data & eEnablement and Pi Benchmark stands in the breakout area to discuss the opportunity for your Trust and how to get ahead of the game with LPP’s eEnablement toolkit. We are also joined by Healthlogistics who provide Catalogue Management and Transaction Exchange services on behalf of the LPP. Supported by

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