Firms agonise over pitching as NHS squeezes panel rates

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  • I've said it here before, if you price yourself low now, do not expect to be able to get back to the previous levels, ever. Once the benchmark has been set there isn't a hope in hell of any public sector client paying anything other than an inflationary rise with the deficit running at £2trillion and the media applying untold scrutiny to the sector. Furthermore, the rest of the public sector will follow the lead of the Met and NHS so consequences of the bidding process here are relevant for all firms with public sector contracts.
    A couple of the firms on that panel are going to have to take some seriously tough choices as pillars of their business model are built on healthcare and NHS work.
    We all know firms who have bid too low on public sector contracts in the past just to get the work and where are they now?

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  • A lot of firms I suspect will be circulating, hoping that some of the existing firms with larger overheads who have not trimmed costs will not tender, knowing full well they could do the work at reduced costs albeit still a healthy profit.
    It is a big call the grass is always greener elsewhere !
    Sell the BMW and order a BMX if you want the work.

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  • In my time at one of the NHS staple firms mentioned above, I have never managed to do a job within the budget agreed, because the budget agreed was so low it was impossible. This is demoralising. I am an excellent lawyer but invariably feel that NHS clients rip me and my firm off. How low can we go ? The answer is until half of us have gone bust.

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