Milton Keynes University Hospital: Delivering over £3 million in savings through a complex medical equipment managed maintenance service contract

The Hub supported MKUH with an open tender for their EBME service, which achieved approximately £42,000 in savings per month for the duration of the contract.

Background

Milton Keynes University Hospital NHS Trust (MKUH) required a fully comprehensive Medical Equipment Managed Maintenance service which covered everything from simple oxygen flowmeters to highly specialised, complex medical equipment, all of which is vital to the delivery of patient care.

The existing contract had been in place for a number of years and all available extensions had been used. The Trust needed to re-tender the service to secure better value, compliance and long-term stability.

The project

The Trust needed to run an open tender to ensure competition and equal opportunity for all Electrical and Biomedical Engineering (EBME) suppliers, to ultimately give the Trust the best outcome for staff and patients. The service required was highly complex, involving nearly 12,000 medical assets, each requiring specific maintenance schedules and safety checks, as well as management of specialist sub-contractors and original equipment manufacturers (OEMs).

The procurement had to deliver:

  • A legally compliant open tender process
  • Improved value for money
  • Long term contractual stability
  • Engagement with multiple internal stakeholders including the Medical Equipment Manager, Medical Equipment Library Manager and Head of Estates

As they didn’t have the resource in their team for such a complex, detailed procurement, the Trust commissioned the Hub on a consultancy basis to lead the end-to-end procurement process.

Key actions included:

  • Developing a full technical specification to reflect current needs and changes since the last tender process
  • Preparing the tender documents and managing supplier clarifications
  • Writing and administering the Supplier Selection Questionnaire (SSQ)
  • Delivering evaluator training and chairing moderation meetings
  • Preparing detailed records, outcome letters and board reports for approval
  • Supporting the Trust through a soft challenge by providing expert advice and liaising with external legal advisors, helping the Trust avoid escalation to a formal legal dispute

Mark Kevlin, the Hub’s Procurement Specialist tasked with developing the specification, drew on his prior experience working within an NHS trust to shape a fit-for-purpose document that reflected real operational requirements. The process also delivered improvements in specification quality and governance, setting a strong precedent for future procurements.

The impact

The East of England NHS Collaborative Procurement Hub were exceptional in the way they led this procurement. Their knowledge of EBME services and NHS operating procedures was evident throughout, and they ran what was a highly complex project with professionalism, clarity and control.

The team provided clear guidance at every stage, ensured the process was compliantly  robust, and managed stakeholders and suppliers with real confidence. Their effectiveness not only delivered significant financial savings, but also strengthened our governance, documentation and long-term contract stability. Their expertise was critical to achieving such a robust and successful outcome.

Lisa Johnston

Head of Procurement

Milton Keynes University Hospital

The new EBME contract achieved:

  • Savings of approximately £43,000 (ex. VAT) per month, exquating to nearly £2.6 million in total value reduction.
  • A legally compliant, transparent open tender process.
  • Long-term contractual stability for both the Trust and supplier.
  • Improved documentation, governance and audit train throughout the procurement lifecycle.
  • Social value commitments incorporated into the final award such as the number apprenticeships, a 50% CO2 reduction in the contract term from the baseline and electrification of their fleet.

The project demonstrated that with expert support, complex and long-standing services can be successfully re-tendered to achieve better value and stronger contract management foundations.

Although EBME is a highly complex and specialised area, this project approach is replicable across other NHS trusts, with the potential to deliver significant financial savings and long-term value.