NHS SBS Commercial Procurement Solutions, a new business service, is hoped to drive efficiencies of more than £1 billion in NHS procurement over the next five years.

Commercial Procurement Solutions was launched following the merger of North West Collaborative Commercial Agency (NWCCA) with NHS SBS. This merger will offer all new and existing NHS clients a full, end-to-end procurement solution.

Speaking about the new service, Health Minister Lord Howe said: "Getting the best value for money for the NHS and the taxpayer is vital. I am pleased that this service will help NHS Trusts to manage their procurement in the most cost efficient way possible."

John Neilson, Chief Executive of NHS Shared Business Services, added: "The Government's efficiency drive means that NHS Trusts will be expected to deliver even greater savings over the next five years. By working with NHS SBS Commercial Procurement Solutions, NHS Trusts will have access to a wide range of agreements that take advantage of economies of scale and established relationships with suppliers."

He continued: "NHS SBS Commercial Procurement Solutions aims to rapidly develop health purchasing procurement skills, raise overall standards, consistency and quality of commercial capability for the NHS, and build on previous best practice."

The new service will continue to be managed by Peter Akid expanding both its service offering and geographical coverage to help NHS Trusts achieve savings of more than £160 million. It is anticipated that this new model will deliver substantial savings to the NHS whilst at the same time improving quality, patient safety and provision of services.