NW NHS promises to settle invoices in 10 days

THE North West is the first English region to see all of its NHS organisations pledge to the prompt payment of invoices to help the cash flow of of businesses in their supply chain.

All 63 local health bodies in the region have committed to paying invoices within 10 days.

The move follows a call by Rosie Winterton, minister for regional development ,in July for both the public sector and businesses to sign up to the Government’s Prompt Payment Code, which commits organisations to pay suppliers on time, give clear guidance on payment and invoicing and to encourage good practice.

S F Taylor Commercial Printers produces printed literature for the NHS in the North West. It employs 50 staff at its base in Stockport.

Director Gill Tress said: “We have a contract covering all Central Manchester hospitals. To meet the contract we invested heavily in the business with the purchase of digital equipment. Prompt payment has proved a lifeline to us. If we can’t pay our suppliers on time, then they can’t pay theirs. It’s a knock-on effect right down to the guy at the bottom. Prompt payment enables us to pay our suppliers on time. It’s good for the overall morale of the company and our suppliers.”

Mark Ogden, NHS North West finance director, said: “Cash flow is the lifeline of every business; and never has cash flow been as important as it is today in the face of this challenging economic climate.

“At NHS North West we realise the potentially devastating knock-on effects of late payment. Which not only deprives businesses of cash to buy stocks and pay wages, but can lead to increased levels of stress and stress is a well-known trigger for ill health. So we feel it is very important for NHS organisations to pay their suppliers promptly to ease cash flow and minimise stress.”

Lord Davies, the trade, investment and small business minister, urged both public and private sector organisations to follow the lead of the NHS in the region.

He said: “Settling bills promptly can make all the difference to the cash flow of a small business.

“Government is playing its part – but every part of the supply chain must help ensure prompt payment to support our small businesses.”