In collaboration with Bank Partners, Kingston Hospital implemented a strategic plan to significantly reduce bank and agency costs for the financial year 2024/25. This initiative follows success in 2023 and aims to enhance governance, negotiate better rates, and eliminate long-term, high-cost agency usage.

The Challenge

Kingston Hospital faced escalating costs and a heavy reliance on supplier agencies for staffing, particularly long-term, high-cost workers post-pandemic. Despite a notable reduction in 2023, maintaining and further reducing these costs while ensuring quality patient care remained a significant challenge.

Why Bank Partners

Bank Partners, part of Acacium Group, is the leading independent provider of bank solutions in the UK. Experienced in developing and implementing strategies to reduce reliance on expensive off-framework agencies, Bank Partners has proven success in resetting default agency rates to align with NHS England’s price caps. This data-driven approach focuses on sustainable long-term solutions.

The Solution

Bank Partners launched a comprehensive plan to tackle Kingston Hospital's dependency on agency workers and reduce expenses significantly. The strategy focused on a robust agency cost reduction plan, prioritising a bank-first delivery. Key areas included:

• Tier 0 supply chain management – Streamlining initial supply chain levels and reducing agency spend by using preferential agency rate partners.
• Agency migrations – Transitioning from agency to bank staff, enhancing stability, and cutting costs.
• Removal of off-framework agency use – Eliminating costly and non-compliant agency usage.
• Best-practice behaviours – Embedding workforce best practices to boost efficiency and service quality.
• Services review – Reassessing service demands to efficiently align resources with demand.

Savings of approximately £200k were achieved by negotiating reduced rates with primary suppliers. The plan also involved aligning bank pay rates to mid- or entry-level band points, expected to save around £1.04m.

Impact

Financial Savings

Kingston Hospital is on track to save approximately £1.5 million in the 2024/25 financial year. By negotiating reduced rates with primary suppliers and enforcing strict governance measures, the hospital expects significant cost reductions without compromising the quality of care.

Reduced Agency Dependency

One of the most notable impacts of this strategy is the reduction in dependency on high-cost agency workers. By eliminating long-term agency usage and implementing targeted bans in specific roles, the hospital can better manage its workforce and reduce reliance on external agencies.

Operational Efficiency

Bank Partners, through a collaborative approach, has supported the hospital in achieving a more efficient and sustainable workforce model by addressing the root causes of long-term agency reliance and finding alternative staffing solutions.

Quality of Care

Despite focusing on cost reduction, the plan ensures that patient care is not compromised. By promoting internal staffing solutions and reducing reliance on expensive agency workers, the hospital can continue to deliver high-quality care while managing costs effectively.