Select Committee on Treasury Eleventh Special Report


NHS Procurement

Supplementary Note from HM Treasury

The Government undertook in its response to Recommendation (i) of the Treasury Committee's report on the Office of Government Commerce (HC 851, 2001-02) to advise the Committee of the outcome of discussions with the NHS.

Following discussions between the OGC and the Department of Health about NHS procurement, the Department of Health have invited Brian Rigby, Deputy Chief Executive of the OGC, to lead a departmental six-month review of how the commercial activities of the Department of Health are structured.

The objective of the review is:

"To recommend the most effective organisation and resourcing of the commercial activities of the Department of Health and its agencies, including support to the NHS, to ensure efficient and effective delivery of NHS Plan targets."

The Department of Health are keen to ensure that their acquisition activities are conducted in the most effective way to support their medium term strategy. The review will examine whether an overarching commercial director function would provide the necessary focus and what suitable terms of reference might be.

October 2002

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Prepared 23 October 2002