§ Mr. John MarshallTo ask the Secretary of State for Health whether she has produced or has commissioned any assessment of the relative cost savings likely to accrue to service providers if the NHS Supplies Authority's warehousing and distribution Information Technology and purchasing functions were(a) separately market tested or (b) run by the private sector as an integrated body under principles of integrated supply chain management; and if she will make a statement.
§ Mr. SackvilleOur current assessment is that in present circumstances the National Health Service Supplies Authority seems best placed to deliver the necessary planned improvements in the national infrastructure of NHS procurement services over the next few years without loss of momentum on service levels and performance standards, and where appropriate with use of market testing or other collaboration with private sector partners. The authority plans to market test its logistics services in the context of a strategy planned to save at least £5 to £10 million a year, when fully implemented, for a more efficient and flexible service. In developing its information technology strategy it will continue to make use of market testing wherever this can add value and/or choice. In 1992–93 the value of its contracted-out computer services and equipment was £2.7 million. It achieved purchasing savings of over £71 million in 1993–94 on behalf of NHS customers, but all NHS trusts remain free on a value for money basis to make their own direct procurement arrangements or to market test all or part of such services as alternatives to using NHS Supplies as their contracted purchasing agent.