Case study – Procurement Cost Reduction programme delivers £3 million savings for leading private healthcare provider

The client is an independent provider of private healthcare, offering treatment to private patients, medically insured patients, and NHS patients

As part of wider profit improvement programme, procurement cost reduction identified as key driver of savings

• Undertook spend analysis and opportunity assessment; building a bespoke clinical and non-clinical category structure for >£500m of non-pay spend
• Developed category strategies and workplan, with savings targets, for more than 50 categories
• Took responsibility for delivery of 11 categories to augment client procurement team

• Complete spend analysis accessible by client team through ProIntell
• New category structure and category strategies
• Two year function workplan with savings target of >£15m
• Delivery of >£3m savings from assigned categories, freeing up client resources to focus on their categories
• Assessment of procurement function capability against NHS Standards of Procurement
• Recommendations into Procurement Transformation Plan to meet Carter Report challenges