NHS supply chain finance

Public Accounts Committee Closed Inquiry
Opened: 20 Oct 2021 Closed: 7 Apr 2022 Parliament page
Prior to its collapse in March 2021, Greensill Capital was involved in the provision of a supply chain finance scheme to more quickly reimburse community pharmacies for dispensing NHS prescriptions. Greensill was also involved in a “payday” scheme that enabled employees of NHS Trusts to access their salaries early. Following … Read more
8 Recommendations
24 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 5 events
28 Apr
2022
Report published
4 Feb
2022
Report published
6 Dec
2021
Correspondence
6 Dec
2021
Correspondence
15 Nov
2021
Oral evidence
Oral evidence sessions 1 session
15 Nov 2021
View on parliament.uk
NHS supply chain finance
Erika Bannerman · NHS Shared Business Services Michael Brodie · NHS Business Service Authority Simon Tse · Crown Commercial Service Sir Chris Wormald · Department of Health and Social Care
Title HC No. Published Items Response
Thirty-Fifth Report - The pharmacy early payment and salary adva… HC 745 4 Feb 2022 32 Responded
Recommendations & Conclusions
6 results
Clear
11 Conclusion Acknowledged
Thirty-Fifth Report - The pharmacy…
Three companies bid to be the framework supplier.
Three companies bid to be the framework supplier. One was discarded on failure to meet minimum quality grounds, leaving Citibank and Taulia. CCS’s commercial finance accountant’s evaluation of Taulia’s Dun & Bradstreet score and a review of its accounts required … Read more
Government Response
The government agrees with the committee's recommendation that the Department and CCS should formalise the process for considering conflicts of interest.
HM Treasury
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12 Conclusion Acknowledged
Thirty-Fifth Report - The pharmacy…
We asked why there was no discussion about a potential conflict of interest arising from...
We asked why there was no discussion about a potential conflict of interest arising from Lex Greensill providing advice on supply chain finance services and his company, Greensill Capital, then being appointed to supply these services. We asked whether CCS’s … Read more
Government Response
The government agrees with the committee's recommendation that the Department and CCS should formalise the process for considering conflicts of interest.
HM Treasury
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17 Conclusion
Thirty-Fifth Report - The pharmacy…
NHSBSA amended PEPS within the existing arrangements from July 2020 at the request of the...
NHSBSA amended PEPS within the existing arrangements from July 2020 at the request of the Department. This amendment allowed pharmacies to obtain funds at the beginning of the month, prior to dispensing, thereby introducing a higher risk to the lender … Read more
HM Treasury
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18 Conclusion
Thirty-Fifth Report - The pharmacy…
On 1 March 2021, NHSBSA learned that Greensill Capital might be unable to fully fund...
On 1 March 2021, NHSBSA learned that Greensill Capital might be unable to fully fund that month’s payments to pharmacies. On the instructions of the Department, NHSBSA took emergency action to make direct payments to all pharmacies within the scheme … Read more
HM Treasury
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26 Conclusion Acknowledged
Thirty-Fifth Report - The pharmacy…
The Department told the National Audit Office that its policy position on salary advance schemes...
The Department told the National Audit Office that its policy position on salary advance schemes is that their use is a matter for individual NHS trusts and for that reason it would not provide advice or guidance to NHS trusts … Read more
Government Response
The government agrees with the Committee’s recommendation that the Department, working with NHSE&I, should adopt a formal process for ensuring that government advice is disseminated to NHS trust leadership, stating this recommendation has been implemented.
HM Treasury
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28 Conclusion Acknowledged
Thirty-Fifth Report - The pharmacy…
Employer Salary Advance Schemes (ESAS, or salary advance schemes) are not regulated by the Financial...
Employer Salary Advance Schemes (ESAS, or salary advance schemes) are not regulated by the Financial Conduct Authority (FCA). These salary advance schemes link an employer payroll process to an employee smartphone app to offer advances of accrued earnings from a … Read more
Government Response
The government has not seen substantive evidence of consumer detriment arising from the use of salary advance schemes and believes they can be a useful tool to help people manage their finances; however, it welcomes the development of an industry code of practice and will consider further interventions if signs of consumer detriment emerge.
HM Treasury
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Government Response AI assessment · 30 of 8 classified
Accepted 19
Acknowledged 4
Not Addressed 1
Rejected 6
Total 8 recs + 24 conclusions
Correspondence 2 letters
6 Dec 2021 Correspondence from NHS Business Services Authority relating to NHS Supply Chain Finance, dated 29 November 2021
Parliament page
6 Dec 2021 Correspondence from the Department of Health and Social Care, relating to NHS Supply Chain Finance, dated 30 November 2021
Parliament page