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Invoice Payment

Request

I would like to make four separate requests for information under the Freedom of Information Act. I would be grateful if you could respond immediately to confirm receipt of these requests and to provide me with a unique reference number for them. 

I would like to request information the amount of time it takes your organisation to pay suppliers.  

Requests:

I am requesting:

1.  Since 8 October 2008 to date, the percentage of suppliers’ invoices that a) have and b) have not been paid within 10 days.
2.  Since 8 October 2008 to date, a) the number of suppliers who have not been paid within 10 days and b) the total value of the suppliers’ invoices concerned.  
3.  Since 8 October 2008 to date, a) how much the organisation paid to suppliers in interest for late payment pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 and b) the total value of the suppliers’ invoices concerned.
4. Since 1 April 2008, how much the organisation paid to suppliers in interest for late payment pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 and b) the total value of the suppliers’ invoices concerned.


Our Response

I refer to your email requesting information in respect of NHS East Midlands supplier invoice payments.    

I can confirm in accordance with S.1 (1) of the Freedom of Information Act 2000 (FOIA) that we do not hold all of the information that you have requested.  

However, Section 16 of the Act places a duty on us to provide help and assistance where necessary and I am able to provide the information you have requested in respect of April 2009 onwards.  

I should point out that NHS East Midlands payment performance is measured using 4 key metrics which need to be taken into account when considering the response to question 2:-

  • % Volume of NHS invoices paid within 30 days
  • % Volume of non-NHS invoices paid
  • % £ value of NHS invoices paid
  • % £ value of non-NHS invoices paid

 

I will address each of your questions in turn:-

1.         Since 8 October 2008 to date, the percentage of suppliers’ invoices that a) have and b) have not been paid within 10 days. 

a) 52.6% and b) 47.4%

2.         Since 8 October 2008 to date, a) the number of suppliers who have not been paid within 10 days and b) the total value of the suppliers’ invoices concerned. 

a)  1,110 and b) £60,845,530.34. 

3.         Since 8 October 2008 to date, a) how much the organisation paid to suppliers in interest for late payment pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 and b) the total value of the suppliers’ invoices concerned.

No interest paid

4.         Since 1 April 2008, how much the organisation paid to suppliers in interest for late payment pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 and b) the total value of the suppliers’ invoices concerned.

No interest paid

I would like to point out that NHS East Midlands is required to pay its non-NHS trade creditors in accordance with the Confederation of Business Industry (CBI) Better Payment Practice Code. The target is to pay 95% of all trade creditors within 30 days of receipt of goods or a valid invoice (whichever is later) unless other payment terms have been agreed with the supplier. NHS East Midlands’ financial systems are configured to capture and report this statutory duty which is why we are unable to report 10 day payments in accordance with your request.     

In keeping with all public sector bodies NHS East Midlands has signed the prompt payment code as an indicator of our commitment to prompt payment of creditors. 

I have also included a link to our website that will enable you to see our current performance in terms of invoice payment.  The relevant paper is EM/07/10 Financial Report January 2010, and the figures are on Annex 5.

http://www.eastmidlands.nhs.uk/about-us/the-board/

I hope that this information is of use.  If you are dissatisfied with the way in which we have dealt with your request you can ask us to review our decision by writing to:-

Mr Kevin Orford
Deputy Chief Executive and Director of Finance
NHS East Midlands
Octavia House
Interchange Business Park
Bostock's Lane
Sandiacre
Nottingham
NG10 5QG

If at the conclusion of any review you remain dissatisfied you may complain to the Information Commissioner who can be contacted at:-

The Office of the Information Commissioner
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF