Achieving Efficiencies, Delivering Value and Making Savings Emma Birchall Associate Director of Informatics East Lancashire Hospitals NHS Trust

Areas 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 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 Burnley General Hospital Accrington Victoria Community Hospital Clitheroe Community Hospital Pendle Community Hospital Over 20 Community Sites

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 NPCEClassDescSectionBrandMPCUoIRequsition type Qty supplied Total demand(£)Our CostChannel Channel + 3%Revised TotalSaving WYF1665WAT Cartridge laser black remanufactured Compatible for use in Hewlett Packard Laserjet P2035/P2050/P2055D/N equivalent to CE505A Ink and toner cartridges (ST)My BrandREMCE505AEach of 1 Value-Only transactions 481£10,788.92£22.43£16.00£16.48£7,926.88£2, WYM1673WAT Cartridge laser black For use in Hewlett Packard Laserjet p3015dn/d/x. CE255A Ink and toner cartridges (ST)Hewlett PackardCE255AEach of 1Online Ordering 465£37,941.31£81.59£76.49£78.78£36,634.89£1, WYF1884WAT Cartridge laser black remanufactured Compatible For use in Hewlett Packard Laserjet p3015dn/d/x equivalent to CE255A Ink and toner cartridges (ST)Supplies TeamREMCE255AEach of 1Online Ordering 268£10,395.04£38.79£28.00£28.84£7,729.12£2,665.92

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: ItemHighest Quote Lowest Quote Budget Price No. Bought Saving Achieved Laptop£1,561£853£1,04833£6,435 Fuser£102£101£1689£603 Headset£160£151£20319£988 Total Saving:£8,026

East Lancashire Hospitals NHS Trust Any Questions?