NHS England has insisted it is committed to a policy that requires trusts to pay suppliers promptly, HSJ has reported.
It comes after Barking, Havering and Redbridge University Hospitals Trust, which is running low on cash reserves, said NHS England “advised that some providers may need to consider deferring supplier payments where necessary to avoid breaching cash limits”, as HSJ reported this week.
A report to the board of the trust, which runs hospitals in health secretary Wes Streeting’s Ilford North constituency, said this action would be a “last resort and highly undesirable”.
NHS England wrote to providers on Wednesday claiming HSJ’s story was inaccurate but the trust stuck by its initial comments. NHSE was also approached before publication but made no comment.
The letter, from deputy chief financial officer Nicci Briggs, said providers should delay payments up to the limit allowed under current rules. Under the Better Payment Practice Code, which was introduced to support small and medium businesses, NHS organisations should pay 95 per cent of invoices within 30 days.
BHRUT currently averages 90 per cent performance against the payment code.
The NHSE letter said: “At no stage has NHSE told providers to defer payments. “We are encouraging providers to utilise the full period of agreed payment terms, consistent with the Better Payment Practice Code i.e. paying at 30 days where suppliers’ credit terms allow for 30 days.
“I know that all NHS providers seek to build strong partnerships with their suppliers, built on mutual trust and transparency and I am aware that some suppliers may have been concerned to have read this article.
“Where necessary, please do speak to your suppliers and offer any reassurances they need.”
NHSE has been approached for further comment by HSJ.
Date: 24 July