Unions Oppose NHS Deal with Novation, DHL
The Times in the UK and the BBC report that the NHS plans to outsource parts of the NHS Logistics Authority and of the NHS Purchasing and Supply Agency to Novation and Germany-based DHL. Right now the purchasing agency handles 3,000 national purchasing contracts, influencing around half of the £7 billion (amounting to about $6.6 billion) spent in the NHS on purchasing goods and services. Health Minister Andy Burnham told The Times recently that the contract was not a done deal yet but medical suppliers queried by the newspaper doubt it.
The Trade Union Congress (TUC) says this decision is based on an ideological preference for a private, market-based approach. The NHS decision is also questioned since Novation and other GPOs are under scrutiny in the US because of their cosy relationships with some suppliers.
August 3, 2006 Related topics: Contract Awards, Group purchasing & GPOs