Oireachtas Joint and Select Committees

Thursday, 23 July 2015

Joint Oireachtas Committee on Health and Children

Procurement Practices for the Purchase of Hospital Supplies and Equipment: Beacon Hospital and Health Service Executive

2:00 pm

Mr. Liam Woods:

Over the years 2009 to 2012, there were relatively high savings figures as we drove at price as the core component of how we would secure public value. Our capacity to get ongoing price reductions is now limited in the face of the price freeze, the reductions we have imposed and currency movements that have been under way for some time, given the reference pricing to dollars on some occasions. However, reductions are still possible. We have a target in the 2015 service plan of €30 million for procurement savings and it looks as though we will hit that target. We are also looking to make savings in the area of logistics, in terms of how we manage the delivery and storage of supplies and, more fundamentally, in terms of appropriate usage of supplies. That is more about dealing with the efficiency of usage of products and services and involves clinical engagement. For example, in our renal programme, we have streamlined the products in use, with the support of our clinicians, gone to tender and contracted nationally. We are driving value in terms of price while also ensuring effective usage. Often our savings in usage can be as great as, or greater than, our price savings. We are delivering based on that, and we are €2 million short of the target set this year. Our targets in previous years have been a lot higher.

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