A Smarter Approach to NHS Procurement, Staffing, and Outsourcing

Transforming NHS Workforce Management for Cost Efficiency and Quality Care

At Globe Workforce Solutions, we believe in data-driven, ethical, and transparent approaches to NHS workforce management. As financial and staffing challenges persist within the NHS, it's crucial to have an open discussion about procurement strategies, staffing models, outsourcing, and unnecessary consultancy expenses. By embracing collaboration, innovation, and sustainability, we can create a more resilient healthcare system that prioritises both cost efficiency and high-quality patient care.

1. Ethical Procurement: Rewarding UK SMEs That Pay Full Tax

The new Procurement Act presents an opportunity to reshape NHS supplier relationships, ensuring public funds are allocated to ethical, tax-compliant businesses that contribute directly to the UK economy.

Why Tax Compliance Matters in NHS Procurement

NHS procurement should prioritise UK-based SMEs that pay full corporate tax, rather than suppliers that exploit tax loopholes. Investing in ethical businesses ensures that public money remains within public services, funding essential areas such as staffing, frontline care, and medical innovation.

The Fair Tax Foundation, an independent not-for-profit organisation, advocates for responsible tax conduct by certifying businesses that meet ethical tax standards. By integrating tax transparency into NHS procurement, we can drive ethical business practices while boosting Treasury returns, creating a stronger financial foundation for the NHS.

For more details on ethical procurement and tax compliance, refer to the Fair Tax Foundation.

Key Takeaway: Ethical procurement practices can strengthen the NHS, ensuring financial sustainability and accountability in supplier contracts.

2. Staff Bank vs. Agency: An Evidence-Based Cost-Benefit Analysis

There is a prevailing narrative that staff banks are always a more cost-effective alternative to agency staffing. However, real-world evidence suggests that agencies play a crucial role in maintaining NHS workforce stability.

The Hidden Costs of Staff Banks

While NHS staff banks can provide cost savings in some cases, the reality is more nuanced. Potential cost escalations arise due to:

• Administration and management costs associated with running a staff bank.
• Retention issues, as staff often switch to agency roles for better pay and flexibility.
• Escalating bank rates when shortages drive demand beyond capacity.

Why Agencies Are Essential for NHS Workforce Resilience

Healthcare staffing agencies provide critical flexibility, enabling NHS trusts to fill urgent vacancies, manage seasonal fluctuations, and maintain service continuity. An independent cost-benefit analysis comparing staff bank and agency costs is essential to develop a balanced workforce strategy that prioritises both cost efficiency and patient care.

For a deeper understanding of NHS workforce planning, see NHS Employers.

Key Takeaway: Rather than an ideological shift toward staff banks, NHS workforce strategies should be data-driven, ensuring cost-effective staffing without compromising healthcare delivery.

3. Reducing Unnecessary Outsourcing: Repatriating NHS Services

Outsourcing has become a default solution for NHS staffing and operational pressures, yet many services could be repatriated to save costs and improve care quality.

The Challenges of NHS Repatriation

The primary challenge in repatriating outsourced services is workforce shortages. However, a structured approach to workforce planning and collaboration can allow NHS trusts to take back control of key services.

Strategic solutions include:

• Long-term workforce planning to ensure sustainable in-house staffing.
• Collaboration with ethical workforce agencies to address shortages effectively.
• Data-driven analysis of which services should remain outsourced vs. repatriated.

To explore case studies on NHS service repatriation, visit The King's Fund.

Key Takeaway: By reducing unnecessary outsourcing, NHS trusts can cut costs, improve service quality, and retain healthcare resources within the public sector.

4. The Role of the Big Four in NHS Management: A Cost-Benefit Analysis

The Big Four consulting firms—have become deeply embedded in NHS financial and operational strategy. However, their role comes at a significant cost.

How Much Does the NHS Spend on the Big Four?

Over the past decade, the NHS has spent hundreds of millions on consultancy fees for:

• Financial restructuring
• Operational efficiency projects
• Digital transformation initiatives

The Problems with Over-Reliance on Consultancy Firms

• Excessive costs with limited long-term benefits
• Lack of innovation, as solutions often repackage existing NHS knowledge
• Conflicts of interest, with NHS executives moving between the health service and consultancy firms
• Failure to address workforce issues, focusing on restructuring instead of staffing resilience

Alternative Strategies to Reduce Consultancy Costs

• Investing in in-house NHS expertise to develop sustainable leadership teams.
• Engaging frontline staff in decision-making for practical, effective solutions.
• Holding consulting firms accountable with performance benchmarks and measurable outcomes.

For further reading on NHS spending and consultancy costs, visit the National Audit Office.

Key Takeaway: NHS trusts should conduct a comprehensive cost-benefit review of Big Four consultancy spending, identifying opportunities to reduce costs and reinvest in patient care.

The Way Forward: Collaborative, Transparent NHS Workforce Solutions

At Globe Workforce Solutions, we advocate for practical, ethical, and data-driven workforce strategies. The future of NHS staffing and procurement requires an approach that prioritises:

• Ethical procurement, rewarding tax-compliant UK suppliers.
• Balanced workforce planning, integrating staff banks and agencies where appropriate.
• Repatriation of NHS services, reducing unnecessary outsourcing.
• Smarter consultancy spending, freeing up resources for frontline care.

Partner with Us to Strengthen the NHS

As an NHS decision-maker, procurement leader, or workforce planner, your insights and collaboration are vital. Let’s explore practical workforce solutions that enhance efficiency, reduce costs, and improve patient care.

Contact Globe Workforce Solutions today to start the conversation. Together, we can build a stronger, fairer, and more resilient NHS.