DEPARTMENT OF HEALTH
News Release issued by COI News Distribution Service on 7 May 2009
procurement skills across the NHS will receive a major boost to
help deliver high quality, personalised care for patients,
following the publication of a new Commercial Operating Model by
the Department of Health today.
Commercial skills are integral to today's NHS. The new
Commercial Operating Model will strengthen commercial leadership
within the NHS and help it deliver high quality care for every patient.
Director General of Commissioning and System Management, Mark
"Over the coming years, the NHS faces the challenge of
continuing to improve the quality, accessibility and range of
services delivered to patients, while making the most of every
penny of the taxpayer's money. The demand for first class
commercial skills within the NHS will only increase.
"The new Commercial Operating Model will deliver a step
change in commercial capability, raising the standard of
commercial knowledge at all levels across the NHS, ensuring the
appropriate support and structures are in place to deliver
efficient, innovative and responsive care for patients.
The Commercial Operating Model will improve support and increase
commercial capability throughout the NHS by:
* creating new regional Commercial Support Units (CSUs), offering
a range of dedicated commercial support to NHS health care
providers and service commissioners to help them improve their
skills, gain better value from procurement and respond more
effectively to the commercial challenges of operating in
today's NHS. PCTs will not advance past level 1 for World
Class Commissioning competencies relating to 'stimulate the
market' and 'secure better procurement skills',
unless they develop the functionality offered by CSUs;
* making the 10-year NHS Supply Chain contract work harder and
smarter to deliver greater efficiencies for providers and
commissioners alike, with more transparent pricing, increased
responsiveness and better strategic management;
* transferring the NHS Purchasing and Supply Agency's (PASA)
functions to organisations that can add greater scope, scale and
impact to the procurement of goods and services;
* creating a new commercial centre within the Department of
Health - the Procurement, Investment and Commercial and Division
(PICD) to strengthen commercial and procurement support for the
department itself and to ensure alignment of the wider commercial
landscape. A new Strategic Market Development Unit will take
responsibility for leadership and support to commissioners in
market analysis and market-making. It will also be instrumental in
developing the new Cooperation and Competition Panel; and
* ensuring that the third, voluntary and private sector have a
clear and visible point of contact in each region, simplifying the process.
Mike Parish, Chief Executive of Care UK and Chair of the
Independent Sector Procurement Forum said:
"The new Commercial Operating Model is a welcome initiative
to enhance commercial expertise in commissioning."
Notes to Editors:
1. The Commercial Operating Model has been developed over the
last eight months and follows the recent Office of Government
Commerce Procurement Capability Review which highlighted a need in
the Department of Health to address its commercial and procurement functions.
2. The model can be found at:
3. The changes will be implemented over the next 12 months.
4. For further information contact the Department of Health press
office on: 0207 210 5221.