Continued Growth in Public Sector Healthcare Spend

Millstream reports 17 percent increase in tenders

A rise in outsourcing public health services, such as dermatology, ophthalmology and dental care, has contributed toward the 17 per cent increase in public sector healthcare procurement contracts published, according to Millstream.

This marks a third consecutive year the number of healthcare tenders has increased on the previous year.

The volume of tenders within community and out-patient healthcare has grown significantly. In particular, Millstream has seen a 23 percent increase in tenders for categories including home care, respite care and end of life care in the last 12 months*.

Tim Williams, Managing Director at Millstream Associates, said: “We’ve seen a strong increase in healthcare procurement for a variety of services.

“In the public sector, there’s an encouraging trend for proactive healthcare such as a notable increase in tenders associated with ‘The Healthy Child Programme’ – the government’s early intervention and prevention public health programme. Tenders for NHS Health Checks and mental health services have also seen growth.”

These trends go hand-in-hand with calls for improved cost and operational efficiencies within the healthcare sector. Earlier this year in his review of NHS England Trusts, Lord Carter made fifteen recommendations on improving efficiency through better management of resources, transparency and streamlining services.

Williams added: “NHS Trusts in England are tasked with making £1 billion of savings specifically related to procurement, and it is therefore unsurprising that this process is becoming increasingly digital through eProcurement. 

“Thirty to thirty-five per cent of total NHS spending is on procurement so it’s important that efficiencies are made where they will have most impact.

“We’ve seen first-hand how clarity and simplicity accelerates the procurement process and brings added transparency. This is critical in delivering the efficiencies set-out in the Carter Report but also drive further growth in private sector industries."

*This category also includes home care, sheltered housing, domiciliary care, day care, community care, respite care, end of life care.