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LPP work helps cut FM costs by almost £5m

Dartford and Gravesham NHS Trust in Kent, working with NHS London Procurement Partnership (LPP), has, as LPP puts it, ‘demonstrated that PFI contracts are not untouchable when it comes to finding savings for the NHS’ – a benchmarking review of the soft FM element of the Trust’s PFI contract has seen savings of £4.81 m.

Currently the Trust’s PFI sub-contractor, Carillion Building Services, provides soft FM services including housekeeping, patient catering, logistics (portering, transport, internal security, and waste), switchboard, and laundry. The cost of these forms a significant part of the Trust’s overall PFI costs. LPP, a collaborative organisation funded by its NHS members, was appointed commercial adviser for the benchmarking of the services, a process undertaken every five years. Its work included reviewing the existing soft FM practices deployed.

 

LPP help and supported the Trust in the benchmarking process, and advised in the negotiations with the PFI service-provider that delivered the final price changes. It is continuing to support to the Trust in identifying and delivering other potential cost savings.

Edward James, whose LPP team led the work, said: “This project illustrates our ability to work with members to create better, efficient healthcare environments more cost-effectively, and to consistently deliver ongoing FM and other savings to the public purse – a prime example of the NHS working collaboratively with key suppliers to deliver efficiency savings.” 

LPP added: “The £4.81 m saving achieved in the soft FM element of the PFI contract over the next five years represents a saving of some 12 per cent, with service levels still being delivered to the required standard.” 

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Upcoming Events

The Fire Safety Event 2024

National Exhibition Centre (NEC), Birmingham
30th April - 2 May 2024

Wales regional conference, exhibition and awards dinner 2024

International Conference Centre (ICC) Newport
28th - 29th May 2024

NAHFO National Conference 2024

Crowne Plaza Newcastle Upon Tyne
3rd - 5th June 2024

Design in Mental Health 2024

Manchester Central
4th - 5th June 2024

InstallerSHOW 2024

National Exhibition Centre (NEC), Birmingham
25th - 27th June

Healthcare Estates 2024

Manchester Central
8th-9th October 2024

Access the latest issue of Health Estate Journal on your mobile device together with an archive of back issues.

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