April 30, 2015 Industry news
In a recent article by the HFMA, Seamus Ward explores the benefits of a common barcoding system across the NHS.
Lack of standardisation means it’s difficult to collect accurate information – on cost and usage, for example – which makes price comparison, or even when to order new stock, challenging. With no single system, it is no wonder that health service procurement has yet to embrace barcodes with the same gusto as its sister functions in supermarket chains.
However, standardised NHS barcodes are on their way following the launch of the Department of Health’s e-procurement strategy last year. As well as standard barcodes for supplies, codes – linked to NHS numbers – could be added to inpatient wristbands as a matter of course.
Glen Hodgson, head of healthcare at GS1 UK, says the Department asked each nominee to carry out a self-assessment to ensure they were right for the job. And he points out that many GS1 leads are finance directors, chief information officers and, occasionally, medical directors.
GS1 standards offer three main benefits. They improve patient safety, deliver stronger regulatory compliance and lead to operational efficiencies.”
Glen Hodgson, Head of Healthcare, GS1 UK
Glen continues: ‘For procurement activities alone, the adoption of GS1 standards in a 600-bed trust would produce savings of £3m-£5m a year – that is directly from the McKinsey Strength in unity report [about the potential benefits of global healthcare standards]. There are clear benefits in reduced inventory, supply chain visibility – delivering certainty of what you have and where – product safety recall and reducing the transactional costs of supplies.’
GS1 standards could also help trusts comply with forthcoming legislation – this includes the introduction of unique device identification in the wake of the PIP breast implants scandal.
Tesco would say to suppliers that if they don’t meet this standard, they will not do business with them,’ – perhaps that’s a point the NHS must reach. A lot of suppliers will talk about the cost of compliance, but it would benefit them as well. It would smooth their supply chain and help them manage their stock better.’
Jackie Pomroy, head of supply chain at NHS South of England Procurement Services
Encouraging uptake
Glen says the challenge is to convince both trusts and suppliers of the benefits of GS1. The use of a single barcode system will enable the Department to create a single catalogue of NHS supplies. If a product offered by an alternative supplier – perhaps at a lower price – is the same as the product that is normally purchased, they will have the same barcode, allowing trust procurement teams to compare like with like.
The Portsmouth and the Isle of Wight trusts are a step ahead in introducing GS1 barcodes as a result of their work on inventory management, Ms Pomroy believes. ‘Using our inventory management system, we came across 13 different barcode systems being used. There was no standard,’ she says. ‘We met with a consultant from GS1 in 2012 to demonstrate the issues and from that point on we worked closely with them to drive the change.
Need for standards
Nicola Hall, managing director of Ingenica Solutions, which provides GS1 compliant inventory management solutions, says that without standardisation it is impossible for trusts to understand where their procurement budgets are being spent.
GS1 adoption is a huge change management programme, she adds. ‘The big challenge is delivering the strategy. Everyone is quite frustrated about how slowly it is moving forward. Perhaps with the financial imperative, it should be moving much quicker than it is.’
Mr Hodgson is pragmatic about implementation. While a number of trusts will lead the way, he believes many others will be surprised about how much of the equipment and systems needed are already in place. Very few will be starting from scratch.
GS1 barcoding is coming and should help the NHS deliver many of its objectives, including better patient safety and efficiency savings. But the message is clear: this is a medium-term project.
Central Manchester University Hospitals NHS Foundation Trust, which has a non-pay spend of about £350m, chose not to wait for the Department guidance to come out. It has been working closely with its suppliers and GS1 to smooth the adoption process.
Central Manchester has appointed head of procurement and e-commerce Simon Walsh to oversee its adoption strategy, together with a non-executive director. Mr Walsh, also chairman of the Health Care Supply Association, says the trust is taking the GS1 strategy ‘very seriously’ and approaching it ‘with great energy’. The trust is looking at how GS1 can be applied and the consequences of doing so in 12 different areas, including pharmacy, finance and nursing.
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It’s not just about procurement or finance, it’s also about nursing and avoiding adverse drugs incidents, which of course are a cost to the trust,’ – ultimately, this is about patient safety. The main thing is to realise the benefits and get the message out – finance and procurement are in a good place to support that message.’
Simon Walsh, the trust head of procurement and e-commerce
This article was part of contribution first published by HFMA.