The North West London Procurement Confederation has re-appointed Reed Health Group to manage the Master Vendor contract for all temporary allied health professionals, health science service staff and associated staff for a further three years after this innovative Master Vendor contract reduced expenditure on temporary AHP staff from £30million to £15 million in its first year of operation.

The Chief Executives in NW London endorsed a report to reduce the annual £30 million expenditure on temporary allied health professionals and health science service staff. A project team was established and the team decided to centralise temporary recruitment using a Master Vendor model. Reed Health Group, the recruitment and flexible resourcing specialists, was selected in January 2005. Reed Health Group is a member of Reed Executive PLC the leading recruitment and HR services provider in the UK.

The savings were remarkable. In the first full year of the new contract (1 April 2005 – 31 March 2006) the cost of employing temporary allied health professionals has been cut from £30 million to £15 million.

Reed Health Group divisional director, Steve Cheetham commented: “In these days when the NHS is under so much financial pressure, it is crucial to cut costs without compromising patient care. That is exactly what the North West London Strategic Health Authority has achieved using this innovative Master Vendor model.”

The rates we pay the temporary staff we place are set by the health service not by us.

“Acting as the central Master Vender and using other agencies to supply any staff we cannot ourselves supply, we provide a centralised point of contact for all departments within the strategic health authority and ensure the agreed rates are adhered to”, continued Steve. ‘We will enable the strategic health authority, to eradicate duplication, cut administration time and save money that could be re-invested in front line services.”

The Reed Health Group Master Vendor agreement has brought other substantial benefits to the 18 Trusts that make up the NWL SHA:

·          On average over 95% of all vacancies are filled within agreed timescales. This results in improvements and continuity of patient care.

·          Staff supplied by Reed Health, are subject to stringent security and vetting procedures (this includes references, criminal records bureau, occupational health information and right to work status). In addition, other agencies are required to meet the same standards and are audited by Reed Health.

·          The Authority have also found that many temporary staff have moved into substantive or permanent employment as a result of this agreement, leading to even more savings in recruitment costs as no temp-to perm fees are payable under the national framework agreement.

·          Technology and online back office systems introduced by Reed Health enable the strategic health authority, its trusts and departments to introduce improved authorisation controls and see day-by-day, exactly how much they are spending on temporary allied health professionals and health science service staff, leading to tighter budgetary control. These management information systems provide complete transparency over costs, lead times and fill rates.

Trevor Goul-Wheeker, chief executive, Reed Health Group added ‘North West London took the lead in the UK. They were the first, and they deserve praise for being so bold. By cutting administration costs the NHS can save money, maintain its services, even invest more resources in the front line

Mansel Chamberlain, procurement director, North West London Procurement Confederation comments: ‘The Master Vendor system has delivered substantial costs benefits, but even more significant is the level of information now available.

Ian Jackson, primary care commissioning manager of Ealing Primary Care Trust and formerly temp staff project manager: ‘The North West London Master Vendor agreement has exceeded my expectations massively in terms of both financial savings and fill rates.’

The new Strategic Health Authorities in England will almost certainly look to follow this model to limit duplication and drive down costs.

Notes to editors

1.        £30 million was the spend on temporary allied health professionals by the North West London Strategic Health Authority in year 2003/4, latest figures. The spend for 2004/5 is thought to be much the same. The saving has come in the first year of the Master Vendor system, 2005/6.

2.        The 18 Trusts within the North West London Strategic Health Authority are:

·          Brent Primary Care Trust

·          Ealing Hospital NHS Trust

·          Ealing Primary Care Trust

·          Hammersmith Hospitals NHS Trust

·          Hammersmith and Fulham Primary Care Trust

·          Hillingdon Hospital NHS Trust

·          Harrow Primary Care Trust

·          North West London Hospitals NHS Trust

·          Hillingdon Primary Care Trust

·          Royal Brompton and Harefield NHS Trust

·          Hounslow Primary Care Trust

·          St Mary’s NHS Trust

·          Kensington and Chelsea Primary Care Trust

·          West Middlesex University Hospital NHS Trust

·          Westminster Primary Care Trust

·          Central and North West London Mental Health NHS Trust

·          Chelsea and Westminster Healthcare NHS Trust

·          West London Mental Health NHS Trust

3.        The 17 allied health professionals that Reed Health are supplying include:

·          Audiology

·          Biomedical Science

·          Dietetics

·          Mortuary Technicians

·          Occupational Therapy

·          Operating Department Assistant

·          Orthoptics

·          Pathology

·          Pharmacy

·          Phlebotomy

·          Physiotherapy

·          Plaster Technicians

·          Podiatry/Chiropody

·          Radiography

·          Speech and Language Therapy