HEALTH BOARD AWARDS £10 MILLION IN LOCAL CONTRACTS OVER 12 MONTHS

By Lucy Ashton

NHS Greater Glasgow and Clyde has awarded £9.64 million in contracts to locally based businesses in the last financial year.

As a major purchaser within Scotland, NHSGGC uses its significant leverage to ensure contracts are delivered by local businesses wherever possible, and with all contracts awarded in 2020-21 coming to a combined annual contract spend of nearly £50m, this means that around £1 in every £5 for 2020/2021 contract awards went to businesses within the six local authorities in the Board area.

As the lifetime value of the contracts span multiple years, this means in total £43 million will go into the local economy as a result of 2020/2021 contracts alone.

The figures come as the Board publishes its Procurement Annual Report covering April 2020 – March 2021.

Contracts cover a range of spend areas including medical devices and clinical consumables, medical equipment, health and social care services, estates and facilities, small and major building projects, and IT products and services among others, all falling within the Board’s objectives to deliver high quality, sustainable and affordable modern healthcare services.

NHSGGC has additionally integrated a community benefit clause within all relevant contracts meaning suppliers must demonstrate economic, social and / or environmental benefits gained from working with them.

The strategy has been particularly successful within construction projects – such as Greenock Health and Care Centre pictured left, and the North East Hub – and has seen suppliers including BAM Construction and MPMH Construction provide working with the third sector to provide the following benefits:

  • BAM construction: direct work experience placements through charity partnerships, the creation a dedicated outdoor space for charity ‘In Work’, and, engaging with third sector sub- contractors to provide disadvantaged people with employment.
  • MPMH Construction: Supporting annual MacMillian Cancer Charity Coffee morning, working with Scotland’s Bravest armed forces veterans charity to sub-contract signage production, delivering health and safety training to Scotland’s Bravest, and, donating £1500 to the Children’s Hospital Charity.

Chris Sanderson, Head of Procurement for NHS Greater Glasgow and Clyde, said: “As a major organisation within Scotland, we have a responsibility to ensure the contracts we award are providing as much benefit as possible, both to the health board and to the wider community. That’s why we aim to provide as much opportunity to local businesses as possible. Not only does this support the local economy, but it also aligns with a wider public health goal of improving the employability of the working age population, which we know to be linked to positive health outcomes.

“The last year has also seen our community benefit contract condition become fully integrated into all relevant procurement contracts which are already having a positive impact on third sector organisations around Scotland and encouraging all the businesses we work with to think about how they can impact positive social and environmental change within their communities.”

Other charities to benefit from the Community Benefit clause include Alzheimers Scotland, CVS Inverclyde, Lifelink, Flourish House, Impact Funding Partners and Includem so far. An additional £9,000 was spent on ‘Supported Business’ which help provide employment to disadvantaged people. In the last year such businesses as Matrix Fife, North Lanarkshire Industries and City Building have benefited.

Chris Sanderson concluded: “We’ll continue to use our spending power as the largest Health Board in Scotland to help support as many businesses in the health board area as possible, while also engaging with Supported Businesses as we look to recover from COVID-19.”

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One comment

  1. Quite honestly this is the biggest load of spin that could be written.

    A good news story about a whole £9.4 million spent by the health board in procurement from local businesses.How many spin doctors did take to break out this ra-ra keep the punters jolly story.

    Glasgow and Clyde Health Board in 2019 / 2020 spent around £2,700,000,000 or £2.7 billion.

    Now whilst a substantial proportion of that will be salaries, maybe 40%, the remainder will include very substantial amounts for procurement from everything paper clips, to stationary, to property repair, to furniture replacement – and out of that absolutely huge spend the health board spin doctors crow that they spent £9.4 million on local procurement.

    Seems to me an absolute drop in the ocean. But hey ho, I’m not one of the Scottish governments’s army of spin doctors feeding out fodder stories.

    Rough figures I know but the big question I take from this story is if the GGHB is spending £2.7 billion, why aside of wages, and things things that it cannot procure locally, is it only spending £9.4 million in an area of 1.2 million people.

    Or maybe I’m not recognising a great news story for what it is.

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