The National Health Service (NHS) is the publicly funded healthcare system of the United Kingdom. It is responsible for providing healthcare to all UK citizens and is funded through a combination of taxes and government borrowing. In this article, we will look at how the NHS spends its money, and how it procures goods and services.

According to the NHS website, most of its funding goes towards paying the salaries of its staff, which includes doctors, nurses, and other healthcare professionals. In the financial year 2019/2020, the NHS spent a total of £129.9 billion on staff costs, which accounted for around 70% of its total budget.

In addition to staff costs, the NHS also spends a significant portion of its budget on the procurement of goods and services. This includes everything from medical supplies and equipment to maintenance and repairs for buildings and facilities. In the financial year 2019/2020, the NHS spent a total of £31.3 billion on goods and services, which accounted for around 17% of its total budget.

One of the challenges that the NHS faces when it comes to procurement is finding ways to get the best value for money. This includes finding cost-effective suppliers and negotiating favourable terms and prices. To help with this, the NHS has established several procurement frameworks and contracts that it uses to purchase goods and services. These frameworks and contracts are designed to streamline the procurement process and ensure that the NHS gets the best value for money.

One example of a procurement framework used by the NHS is the Crown Commercial Service (CCS). The CCS is a government-owned company that provides procurement services to the public sector, including the NHS. It works with suppliers to negotiate contracts for a range of goods and services, including medical supplies, IT equipment, and construction services.

In addition to procurement frameworks, the NHS also uses several procurement strategies to help it get the best value for money. These strategies include working with suppliers to develop long-term relationships, leveraging the buying power of the NHS to negotiate better prices, and using e-auctions to drive down prices through competition.

The NHS also works closely with several partners and stakeholders, such as the NHS Shared Business Services to ensure that it is getting the best value for money. This includes working with healthcare providers, such as hospitals and GP practices, as well as patient groups and other stakeholders. By working together, the NHS can identify opportunities for cost savings and efficiencies, and to ensure that the money it spends is being used effectively to improve the quality of healthcare for patients.

Overall, the NHS is a complex and multifaceted organization that is responsible for providing healthcare to millions of people across the United Kingdom. It is funded through a combination of taxes and government borrowing and spends the majority of its budget on staff costs and the procurement of goods and services. By using procurement frameworks, strategies, and partnerships, the NHS works to ensure that it is getting the best value for money and using its resources effectively to improve the quality of healthcare for patients.