The cost of getting it wrong
Patient safety incidents carry enormous financial costs alongside the human impact. An estimated 237 million medication errors occur in the NHS in England every year, with more than half happening at the administration stage. These errors increase hospital stays, drive up healthcare costs, and contribute directly to patient harm.
Surgical and device-related errors add further financial burden. NHS Resolution reported that surgical claims, including wrong-site surgery and faulty implants, cost the NHS over £195 million in 2021/22 alone. High-profile cases such as the PIP breast implant scandal demonstrate the long-term impact of inadequate traceability, leading to significant litigation and treatment costs.
Blood product waste also represents a substantial cost. In 2017/18, NHS Blood and Transplant reported that 35,931 units of red cells were wasted, costing an estimated £4.6 million. Errors in blood transfusion, while rare, can be fatal in up to 10% of cases and often result in extended critical care and costly follow-up interventions.
Investment returns that add up
Against this backdrop, Scan4Safety represents not just a digital improvement programme, but a financial safeguard. The investments required for scanning technology, training, and integration are outweighed many times over by the savings from avoided errors, improved efficiency, and smarter procurement.
Cost-benefit overview
- Technology and infrastructure costs: Barcode scanners, software licencing, and IT infrastructure upgrades require upfront investment.
Returns: Automation of data capture saves thousands of clinical hours. Improved stock visibility reduces waste – Derby saved £451,000 annually, Plymouth saved £72,000 in orthopaedics alone. Fewer cancelled procedures due to missing or expired items. - Training and change management costs: Staff training and change management resources are essential for successful implementation.
Returns: Greater staff confidence in safety processes, reduced variation in practice, fewer incidents of misidentification or incorrect implants, reductions in waste and more staff time with patients. - Training and change management costs: Staff training and change management resources are essential for successful implementation.
Returns: Greater staff confidence in safety processes, reduced variation in practice, fewer incidents of misidentification or incorrect implants, reductions in waste and more staff time with patients. - Implementation and maintenance costs: Project management and ongoing system maintenance represent ongoing investment.
Returns: Compliance with mandatory requirements, enhanced ability to meet regulatory expectations, and readiness for future NHS digital standards.
Proven results from NHS Supply Chain pilot
NHS Supply Chain has piloted digital inventory management systems across 19 NHS trusts, addressing operational inefficiencies and driving marked productivity benefits.
“The return on investment is five to one.”
Mark Wilkins, Programme Lead, Hertfordshire and West Essex ICB
The programme has delivered impressive results across 17 trusts, spanning multiple clinical specialities and over 70 operating theatres and labs:
2024/25: £2.8 million delivered
2025/26: £15 million targeted
“We estimate we’ll save £100,000 a year from stock that no longer becomes obsolete. In terms of overstocking and stock holding, that figure is 5 to 6 times higher. That money can be spent on patient care – a huge bonus for us.”
Mike Hanson, Director of Procurement, Sandwell and West Birmingham
Time and safety benefits
The financial benefits extend beyond direct cost savings. Stock visibility prevents delays and last-minute cancellations due to missing items. Inventory affected by recalls can be identified and removed within minutes, with patient traceability reduced from weeks to hours.
A recent pacemaker alert took eight days to trace patients manually. With inventory management systems, this takes just a few hours.
Point-of-care scanning ensures correct product usage with built-in alerts for compatibility and expiry, significantly reducing clinical risk. On average, 700 clinical hours per year are saved through reduced time spent on stock management.
“For orthopaedic implants, a clinical person can spend an hour ordering stock. With scanning, that hour is saved — time that can now be spent with patients.”
Maxine Page, Theatre Matron, The Princess Alexandra Hospital NHS Trust
Leading trusts show the way
The top three trusts for benefit realisation demonstrate the potential: Northumbria (£700,517), Rotherham (£530,627) and Newcastle (£412,636). These savings continue to grow through the pilot and beyond.
The top three trusts for benefit realisation demonstrate the potential: Northumbria (£700,517), Rotherham (£530,627) and Newcastle (£412,636). These savings continue to grow through the pilot and beyond.
Tom Burton, Director of Finance, The Princess Alexandra Hospital NHS Trust