NHS right to supply goes to 64 companies

The NHS Supplies Authority has awarded supply rights for hospitals in the South and West for the next three years to 64 resellers, manufacturers, and software houses.

But the jam appears to be spread very thinly indeed, as the authority estimates the value of the framework agreement is worth just #5 million over the three years.

This works out at #78,125 each for the duration of the contract, assuming each winner gets an equal share, or #26,041 a year. But Elonex is already on the record as valuing its share at #1 million, which would leave the rest with even less to fight over.

Seventy three firms bid for South West framework rights, and 64 were named in the award. Winners include the South Western regional dealer Powerhouse RGP, Computa-center's Bristol branch, a clutch of direct manufacturers, and several Digital dealers.

The NHS admits the #5 million valuation of the contract is based on the take-up under the previous framework agreement, which enables UK health trusts to avoid putting each deal out to public tender every time they want to source product. Each trust has 'call-off rights', which enable it to source outside the framework agreement whenever it wants.

The NHS Supplies Authority said that it awarded South and West Division framework supply rights to so many companies in response to hospital demands for greater sourcing flexibility.