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NHS/Connecting for Health
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PACS Business Case and Procurement
Challenge
Picture Archiving and Communications Systems (PACS) capture, store and distribute medical images, such as X-rays, and are key to improving diagnostic services. The PACS sub-programme has the task of implementing PACS in all hospitals and Primary Care Trusts throughout England by the end of March 2007, and has a lifetime cost of nearly £900m.
Solution
Oakleigh was engaged to develop the business case for PACS at both national and local level and to forecast and manage the expenditure of the PACS programme. Each locality implementing the system had to develop a local business case. To avoid massive duplication of much of this work we prepared a template and guidance notes on PACS benefits and their quantification.
By using a benefit-driven approach to underline the business case we were able to demonstrate the full benefits of moving over to PACS from conventional film systems.
The Oakleigh consultants identified that PACS projects were unduly expensive. They conducted a review of pricing which required potential suppliers to submit revised tenders. Oakleigh introduced a new approach, identifying the system components and the original manufacturers to ensure that CfH obtained prices, commensurate with the scale of the investment.
As a result of the review the projected cost of was cut by £ 400m over the life of the contracts. An Oakleigh consultant has reviewed the financial models and pricing catalogues which underpin the bids, and has assisted the contract managers with detailed knowledge of the scope and terms of the contracts.
Outcome
Oakleigh's input into this project had a number of benefits for the client. The development of the business case template helped local health communities develop quickly effective and consistent business cases which help them grasp the 'whole system' benefits of PACS. More effective procurement processes allowed the NHS to make substantial savings on the costs of implementing systems over the life of the programme.
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