This is the first step towards a mass KPI replacement across managed services and in return provide a cost reduction to the NHS (initially England based on the removal of risk).
This is to be a collaboration to remove cost, when risk is removed, then cost can be too to end up with a win/win situation.
The sector through BIVDA has been calling for KPI’s to be addressed and this opportunity is unique to achieve a resolution to a problem that has existed for a long time. There is a savings expectation, but there is a positive risk and cost reduction in exchange for any saving.
Alongside the KPI development there will be caveats and conditions to ensure the implementation will be fair and equitable. Members are invited to share any requirements with me.
The high-level process is that contracts will be changed by change control through the managed service primary provider and when the terms are changed the prices reduce. However, the devil is in the detail.
If contracts have been assigned and have their own terms, this is a commercial decision as to whether they can be changed and whether your cost reduces.
If KPI’s don’t apply to your provision, a cost reduction isn’t mandated.
Some contracts may not allow this change depending on their drafting.
Each separate contract held will need to be looked at on a case-by-case basis and the local paperwork completed properly.
Support will be provided by Helen if required and you should seek your own legal advice if any concern.
Detailed programmes are in development, to gain the best alignment between industry and the NHS, and work is ongoing. We anticipate that the Procurement working party will be the primary meeting in which this is developed, with subject specific work groups being set up where required. This work will also be conducted with IBMS and ACB members to mutually agree the KPI schedule and then Procurement teams will be involved to implement to change.
If you want to be part of this project and contribute to the KPI schedule development, please email Helen