§ Ms Rosie Winterton
Proposals for the reconfiguration of the National Health Service Purchasing and Supply Agency (NHS PASA) are outlined in a report, "Reconfiguring the Department of Health's Arm's Length Bodies", published on 22 July 2004. It is proposed that NHS PASA will be reshaped as part of a major programme to support the NHS in handling purchasing and supply more effectively. The Department's commercial directorate has developed plans to streamline the supply chain in the NHS. As these plans are implemented, a transformed NHS PASA will play a crucial role in applying procurement best practice to maximise savings. NHS PASA should be able to take on procurement and contracting functions from other arm's length bodies (ALBs), helping to reduce the cost of the ALB sector.