East of England agency staffing review

1
East of England agency staffing review
Daniel Cox QIPP Procurement Programme Manager,
East and Midlands SHA
2

Agency staffing review

• Strategic analysis
• - Scope
• - Findings
• - Proof of concept
• Summary and recommendations
• Delivery and implementation

3
Tasked with reviewing the use of agency staff
across the East of England, identifying and
quantifying cost savings scope included a review
of agency staffing in all staff groups across the
East of England region, including- Medical
locums- Nursing- Non Medical Non Clinical
(including professional and Ancillary staff
groups)- Allied Health Professionals (AHP)-
Health Science Services (HSS)
Agency staffing review
Scope
4
Trusts in the region spent over 70 million
during the calendar year 2011. It is estimated
that each trust can potentially save between 5
per cent and 15 per cent. However this is
dependent upon a number of factors and will vary
accordingly in each trust - Contractual
position use of framework suppliers?- Current
rates including tier and volume banding level
being offered by current providers- Level of
collaboration with other trusts- Relationship
with suppliers in the market and willingness to
improve relationships- Willingness to
collaborate- Willingness to agree signed SLA
with preferred framework suppliers- Willingness
to consolidate volumes with fewer suppliers-
Willingness to improve internal processes to
manage demand.
Agency staffing review
Findings (1)
5
Procurement strategies which can deliver such
savings include
- Price improvement
- Volume consolidation to maximise volume banding
discount opportunities
- Collaborative approach to market to maximise
volume banding opportunities
- Demand management
Agency staffing review
Findings (2)

• Further research and review will determine a more
  specific savings estimate for individual trusts
  as this can only be achieved with the following
  trust by trust information
• - Does the trust have signed SLAs with suppliers
  for each staffing group?
• - Has the trust undertaken a supplier selection
  exercise for each of the staff groups?
• - Has the trust collaborated with any other
  trusts to consolidate volumes and achieve higher
  banding discounts?

6
Findings (3)
7
This concept was tested through a project managed
on behalf of Peterborough and Stamford NHS
Foundation Trust (spend approx 3.9 million on
medical locums per annum, with a trend towards
increasing spend). The project identified that
cost savings can be achieved quickly through-
Identification of high spending trusts-
Identification of local supplier ranking through
pareto analysis- Undertaking a mini-competition
under the GPS national framework agreement. The
project outcomes were- One Tier 1 SLA to
Medacs, Tier 2 SLAs to ID Medical and DRC
Locums.- Annualised savings of 463,000-
Greater volume based discount than trust would
have achieved based - Regional discount
negotiated for all other trusts using Medacs.
Agency staffing review
Proof of concept
8

Agency staffing review
Summary

• - Trusts in the region spent over 70 million on
  agency staffing during 2011. The current approach
  to the agency spend results in trusts paying more
  than their peers in other regions.
• The proof of concept project at Peterborough
  and Stamford NHS Foundation Trust has
  demonstrated the level of savings that be
  achieved through market management.
• Recommendations
• Identify further trusts willing to work with the
  project lead to implement tiered or managed
  service SLAs through mini-competitions.
• Negotiate a regional discount structure with top
  suppliers. This will be achieved more easily if
  trusts are willing to collaborate.
• Consider the potential for collaborative
  supplier selection to achieve maximum benefit
  from frameworks and local negotiation.

9
- Currently working with 15 trusts in East of
England in partnership with the East of England
Central Procurement Hub.- 7 mini-competitions
completed delivering over 1,000,000 over savings
based on 2011 spend and demand.- Shortly to
commence work with trusts across the East
Midlands and West Midlands.
Agency staffing review
Delivery and implementation
10
Contact details
Daniel Cox QIPP Procurement Programme
Manager Daniel.cox_at_eoe.nhs.uk 01223 597539