Genmed chosen as SWLEOC procurement partner

Author | Genmed

Genmed announces today that it has been selected by South West London Elective Orthopaedic Centre (SWLEOC) as its preferred vendor neutral managed services provider for the procurement of all equipment required for the running of the specialist hospital. It has a signed a seven-year contract renewable annually by agreement thereafter.

Founded in 2003, SWLEOC is a partnership organisation established by four South West London Acute Trusts to reduce waiting lists and deliver strategic change in how planned orthopaedic care is provided in the region. All orthopaedic work from the four Trusts is now delivered by SWLEOC with over 5,000 procedures performed each year. 

Located on the Epsom Hospital site, SWLEOC operates two wards, five state of the art theatres, employs up to 300 staff including 32 visiting surgeons and is recognised as one of the largest joint replacement centre’s in the UK and Europe. It specialises in shoulders, ankles with most of its work focused on hips and knees.  SWLEOC also runs a 17-bed post anaesthesia care unit [PACU] which all patients go through after their operations. It is unique to the hospital and offers high dependency and critical care facilities.

“Genmed has essentially become an extension of our procurement department buying everything for the organisation.  Its staff are fully engaged with our clinical and medical team to source and deliver the best products for the best prices so we drive down costs.” 

- Mary Richardson, Director of SWLEOC's 

This is crucial as the Government has cut the tariff for orthopaedics by 13% resulting in an annual budget reduction for SWLEOC of up to £3.5 million. Ensuring that the sourcing of equipment and consumables for the organisation is managed carefully is therefore paramount.

Genmed managed services are HMRC compliant for VAT recovery. Based on the scale of its purchasing, SWLEOC has already saved £1 million on VAT. This is then re-invested in providing ongoing patient care. It is expected that in the financial year ending March 31, 2018, Genmed will procure over £11 million of consumables for SWLEOC.

Genmed’s engagement with SWLEOC is broad and covers a range of responsibilities:

1. Managing the non-clinical activities of SWLEOC.

2. Proactive contract management to ensure adherence to Key Performance Indicators and Service Level Agreements involving approximately 300 suppliers.

3. administration and ordering of all equipment and consumables such as syringes, needles, stockings to paper towels, rubber gloves, sutures, masks, stationary – absolutely everything SWLEOC requires to operate on a day to day basis.

4. Close engagement with SWLEOC’s Theatre Efficiency Group (TEG). While clinical processes and patient flows work well, an opportunity existed around reducing expenditure. Genmed is working in tandem with the clinical and medical directors to review which products are currently used and test news ones which could work as well but cost less.  

5. Organisation and management of multiple equipment trials which are evaluated by the TEG group. SWLEOC then applies the 80/20 rule – if 80% of surgeons are happy with a new product, it will be introduced once senior clinical sign off is received.

6. Supplier invoice processing and administration.

7. Organisation of stakeholder days to encourage suppliers to review and offer SWLEOC better pricing on products given the importance and reputation of the hospital.

Another key benefit of working with Genmed has been the provision of new equipment – the costs of which are spread over its 7-year contract. SWLEOC has already been able to introduce new anaesthesia and ultrasound machines, new theatre tables, specialised IT and patient monitoring equipment for the PACU – an investment totalling over £770,000.

“This is unheard of in the NHS where there is only ever so much money for capital expenditure such that you end up limping along with kit that’s on its knees. Our contract with Genmed means we have been able to invest now working within an envelope of outlay agreed with them.”

- Mary Richardson, Director of SWLEOC's

After engaging with SWLEOC, Genmed, as part of the services it provides, recently implemented hTrak, a healthcare information management system, which tracks the usage of consumables and equipment using barcodes.

“The system will allow us to look forensically at what we’re doing and give greater intelligence about what we're buying. So, for example, we’ll be able to review the differences between consultants and what one person spends versus another and drill down into this to make improvements if there is wide variability.”

- Mary Richardson, Director of SWLEOC's

The system will help SWLEOC build a complete catalogue for Genmed in terms of everything it is currently buying and costs associated so the procurement process and supplier selection can be closely managed and enhanced. This also means SWLEOC will be GS1 compliant well before Government’s target date.

“Having run big divisions of surgery in the past at other Acute Trusts, I would have loved to have worked with an organisation like Genmed. Life would have been so much easier. Genmed has been brilliant. They’re down to earth, have good interpersonal skills and are focused on sourcing solutions which are priced right yet gain clinical acceptance.” 

- Mary Richardson, Director of SWLEOC's

“We’re vendor neutral as a managed service supplier. We’re not tied to anyone and select consumables and equipment based on close collaboration with managers and clinicians. This is important. The NHS is obviously publicly funded so budget needs to be spent effectively and with transparency so that organisations like SWLEOC get the very best value for money. That’s what we specialise in.”

- Robin Modak, CEO at Genmed

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