A new system to
tackle variation in how much NHS hospitals pay for products was
announced by Health Minister Simon Burns today.
Some hospitals are currently paying nearly three times as much as
others for the same products like surgical gloves and stents.
Introducing a fairer and more transparent bar code system will
lead to significant savings for the NHS in a market which
currently costs it up to £6 billion annually.
Currently there are a multitude of systems and approaches for
procurement and for identifying products used by the NHS resulting
in a lack of consistent information. For the first time standard
‘GS-1’ bar codes on products will be used across the NHS making it
easier to track and compare purchases.
It also has great potential to improve patient safety. Bar coding
systems have been shown to reduce medication errors, the risk of
wrong-site surgery and the effective tracking and tracing of
surgical instruments, equipment and other devices to improve
record keeping and reduce error, malfunction and contamination.
The use of a single bar code system across the retail sector is
what makes supermarket price comparison websites, which help
shoppers save money on their groceries, possible.
Simon Burns said:
“The NHS cannot afford to continue paying different prices for
the same products. By simply using bar codes, NHS procurement will
become more efficient as organisations can see how much they are
paying for products compared to others. It’s a simple idea that
could save the NHS millions.
"Most importantly this is a vital opportunity to save
money for reinvestment in front-line care at a time when the NHS
needs to make efficiency savings.
“The NHS has enormous buying power if it works consistently and
GS-1 bar coding is a key foundation block to improve it.”
Leeds Teaching Hospitals NHS Trust is already pioneering the use
of bar coding and managed to save more than £500,000 in the first
year. By scanning bar codes as equipment is used on wards, the
system can track available stocks and forecast future orders. This
means that the Trust no longer needs to ensure that surplus stock
is available in case they run out – the system tells them exactly
how much equipment they have in stock in real time so orders are
more accurate.
Graham Medwell, Information Manager – Supplies
Department at Leeds Teaching Hospitals NHS Trust, said:
“Leeds Teaching Hospitals NHS Trust fully supports the Department
of Health’s recommendations that the GS-1 bar coding system should
be adopted throughout the NHS and we have been working closely
with GS-1 UK to ensure that we meet these requirements.
“Since adopting the GS-1 standards there have been real
improvements in stock control with levels available to view in
real time. This has led to significant efficiency savings and
improved productivity.”
Ministers are seeking the support and cooperation of businesses
supplying the NHS to increasingly identify and label their
products with GS-1 bar codes, although voluntary, adoption and use
will benefit both suppliers and the NHS.
Adoption and use of the system benefits both suppliers and the
NHS alike. As is already the case in the retail sector, having the
right bar code will become essential for suppliers who wish to
operate in the UK health market.
The Department of Health will now run a central procurement of
GS-1 bar coding systems for the NHS to allow Trusts to use bar
coding. This means all NHS Trusts can take part in the same
procurement, helping them to choose the right system and saving
them the costs of running their own procurement exercise.
The expectation is that all products should be identifiable by or
carry GS-1 bar codes by the end of 2012.
Notes to Editors
For further information, please call the DH newsdesk on 020 7210
5221. Use of GS-1 as the NHS coding standard was introduced via
"Coding for Success" in 2007 for patient
identification. This is an extension of policy and addresses the
commercial benefits that were absent from Coding for Success and
putting in place a procurement to support introduction
3. A single standard bar code on products will mean
products can be recorded and tracked from manufacture to
use;there will be a clear reference to the product in
administrative/recording processes; andthe detail of products used
on patients will be recorded if required supporting patient safety
and amount spent per head. Jim Easton, National Director for
Improvement and Efficiency (QIPP) wrote to all NHS Chief
Executives in February outlining the case for a more efficient
means of recording, as well as comparing, procurement costs The
QIPP procurement work stream will be used to raise awareness in
the NHS of the benefits of GS1 adoption and how it is
implemented.The decision to invest in systems will sit with each
Trust, the cost of investment will be covered by the savings
made.DH will support the procurement of framework contract
arrangements for system and service providers that will
incorporate the required standards and specifications and lower
the cost of entry for the NHS.
Contacts:
Department of Health
Phone: 020 7210 5221
NDS.DH@coi.gsi.gov.uk