News / Foundations urged to say no to supplier confidentiality

Monitor and the Department of Health are urging foundation trusts to refuse to sign confidentiality agreements in contracts with suppliers.

As part of plans trailled in last August’s procurement strategy, a clause in the NHS standard contract from April will require providers to comply with transparency guidance. It will instruct providers to make procurement data available, including prices they pay for goods and services.

A letter from health minister Dan Poulter and Monitor chief executive David Bennett in February said the two bodies were aware that some suppliers are asking foundation trusts to sign confidentiality agreements to discourage price benchmarking.

‘We would urge you to refrain from signing such agreements,’ the letter said.

Building on this greater transparency, the Department wants trusts to take part in a simple national price comparison system to look at a limited basket of products on a quarterly basis.

The letter also urges FTs to take a ‘robust approach to resisting blanket inflationary price increases from their suppliers’. Further guidance and support tools have been promised.

The measures are part of plans to stabilise non-pay spending for the next three years, liberating £1.5bn-£2bn of procurement efficiencies for patient care. The letter said: ‘While there are pockets of excellence in procurement across the NHS, to deliver such efficiencies we need to tackle inflationary pressures and pursue innovative solutions collectively.’