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Region Saves Over £40 million in Agency Staff Costs
31 July 2017

The Hub has been working closely with Trusts to help deliver against stringent NHS Improvement targets on reducing agency staffing spend and has identified a reduction of nearly £40 million spent on staffing costs for the 14 Trusts who have provided data so far. This figure has the potential to rise above £60 million once the figures from the remaining 10 Trusts have been calculated.

The cost avoidance has come about due to a number of measures, including increased rate cap compliance, with a 157% reduction in rate cap breaches reported in the past year as a result of pro-active supplier and contract management.

In addition to the £40 million cost avoidance, £47k savings were achieved by the Hub in negotiating a retraction of transfer fees billed to Trusts by suppliers. Average prices paid by Trusts for staff across a range of areas dropped considerably in the year April 2016 to April 2017, including the following examples:

  • Average price paid for Band 2 Health Care Assistants: 17.62% reduction
  • Average price paid for medical locums: Consultant: 7.79% reduction, Specialist Doctor: 13.62% reduction

The launch of the NHS Collaborative Procurement Partnership’s (NHS CPP) National Clinical Staffing Framework in August 2016 was the springboard for many of the cost saving initiatives and all Trusts in the region are committed to using the framework.

The Hub continues to work with Trusts to roll-out arrangements and contracts under the framework. Using commitments from Trusts, supported by Memorandums of Understanding, the Hub is facilitating collaborative arrangements.