DH hoping for 50% takeup of new Xansa deal
- 23 November 2004
The Department of Health has announced final details of its NHS shared financial services partnership with IT services firm Xansa, and is expecting half of the eligible NHS organisations to sign up over the next ten years.
The public-private joint venture partnership will see Xansa taking over work from NHS Shared Financial Services, a centralised financial back-office where invoice payment, VAT returns and debt collection is carried out on behalf of NHS organisations. Electronic procurement and integrated payroll systems are also planned for introduction, as well as an expansion in HR services.
A spokesperson for the DH told E-Health Insider that reported savings of £224m are “based on the prediction that we will secure 50% of NHS organisations, which we believe is a realistic target."
So far, only 36 NHS organisations out of a possible 663 have outsourced their financial and accounting services to NHS Shared Services. However, the DH believe that probable cost savings of up to 20% will encourage more take-up among trusts.
It is estimated that financial and accounting services cost the NHS around £1bn per year, and for savings to be made, more trusts will need to sign up.
Health minister John Hutton said: “By entering into this partnership, we are utilising private sector experience to both improve and expand the range of corporate functions provided for the NHS. It’s good news for the NHS and for taxpayers."
Alistair Cox, chief executive of Xansa, said: “This opportunity sits at the heart of our strategy to grow in the government sector and reinforces our existing leadership position in the provision of finance and accounting services. Working with the Department of Health, we will deliver significant and tangible benefits that are able to be channelled to front line patient care."
According to Xansa, the 230 staff within NHS Shared Services will transfer to the company under their existing terms, and receive access to share ownership schemes. The organisation will continue to be based in Leeds and Bristol.
The NHS Shared Services Initiative began life as a pilot in 2001, with a view to manage all NHS finance and accounting functions on a mandatory basis. However, the scheme was overhauled and became voluntary.
