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Public–private venture to save £200m on financial services

The Department of Health, together with business consulting and outsourcing company, Xansa, has launched NHS Shared Business Services, a joint public–private sector venture designed to improve the financial efficiency of NHS organisations.

After a three-year pilot, 47 NHS organisations have signed up to this service. Negotiations are under way with some of the 28 Strategic Health Authorities for the transfer of the majority of NHS financial transaction processing for the NHS organisations in their area to centres in Leeds and Bristol. Also under discussion is the possible transfer of payroll services.

Around 230 staff based in the existing Shared Financial Services Centres in Leeds and Bristol transferred to the joint venture on 1 April 2005.

The software will be provided by Oracle and, under the terms of the joint venture agreement, Oracle Financials 11i will be available to all NHS trusts. NHS chief Executive, Sir Nigel Crisp described the venture as “a very real, very tangible way to demonstrate our commitment to efficiency.”

The projected saving for trusts, health authorities and other bodies is £224m — equivalent to the salaries of 3,000 GPs or 12,000 nurses.

Source: bjhc&im May 2005

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