With grants harder to come by and falling levels of legacy donations right across the charities sector, UK hospices need to maximise the effectiveness of their working capital. For Hospices and residential care we focus on the Indirect costs associated to the provision of Care – vehicles, temporary staff, energy, IT, buildings maintenance and so on. The Care sector is no different to others in that there is a natural, understandable focus on the ‘core’ (Direct) activities and ensuring what’s delivered to the patient and their families is the best that can be, but this often leads to suppliers hiking the Indirect costs – and these passing under the radar.
DID YOU KNOW?
- Britain’s older population is set to sharply increase in the next few decades.
- The number of people aged 85 and over is expected to double in the next 20 years
- The number of people aged 100 or over is expected to increase more than eight-fold by 2035 – to more than 100,000.
- The number of young adults living with life-limiting conditions is also on the increase and there is evidence of growing numbers of young people with highly complex needs moving from children’s services into adult care.
HOSPICE PROCUREMENT FINANCIALS
- On average hospices in the UK receive only a third of their income from the Government, with the rest coming from community fundraising, hospice charity shops, hospice lotteries and investments.
- On average children’s hospices in the UK receive 17 per cent of their funding from the Government, less than a fifth of their expenditure.
- Collectively, charitable hospices in the UK need to raise around £1billion a year from their local communities – which amounts to £2.7 million per day.
- Hospices in the UK spent a total of £1.3 billion on their services in 2014/15 – of which £868 million was spent directly on care, with the remainder on costs including fundraising, compliance and governance.
HOW PROVANTAGE CAN HELP
ProVantage Procurement can help by offering a free detailed spend review to identify areas where we can reduce running costs and redirect funds back to front line activities.
We’ll help review any contracts already in place – and address areas where contracts have been overlooked where they should exist. We will identify and mitigate risk where we find it, challenge costs as appropriate and across the piece look to renegotiate or re-tender to reduce costs and improve quality of supply.
WE TAKE THE PROCUREMENT STRAIN
Your focus is on the quality of Care. Ours is supporting you on keeping down the Operational Costs that are necessary to enable your Hospice to function to its potential. The benefits to you are;
- Your key staff freed up, to carry on with day to day running of the hospice
- Cash savings – seen on the bottom line
- Improved control, visibility and accountability
- Improved quality of contracts, quality of supply – better Value for Money
- Improved working capital
- Improved working processes and performance
- Improved spending and performance
SEE HOW PROVANTAGE CAN SAVE YOU MONEY