How Circular Economies can Provide a Boost to Healthcare

The Labour Government has unveiled its 10-year NHS plan, one of the biggest government shake-ups to the country’s health service in generations. Despite the promise of extra funding, Health and Social Care Secretary Wes Streeting is keen to emphasise reform over investment and ensure any shot in the arm provides value for money and long-lasting change.

This has led to some believing that a procurement strategy based around remanufacturing and re-use could be the NHS’ white knight.

Steve Haskew, Head of Sustainability at Circular Computing, spoke to Procurement Magazine about how remanufactured technology can save the health service billions and help address its sustainability gap. 

How can remanufacturing and reuse strategies help the NHS achieve its sustainability goals while saving money? 

By implementing second-life principles for its IT systems and medical equipment, the NHS can prolong product lifespans, reduce the need for new manufacturing and decrease landfill waste. 

These reuse principles can also apply to the NHS' IT systems. Each laptop bought by an NHS trust typically costs between £500 and £1,000 and creates a third of a tonne of carbon emissions during production.

Switching to remanufactured devices means 15 times less CO2 is produced compared to an average new laptop, while also delivering up to 40% cost savings compared to new models.

The second-life devices are also certified by the BSI Kitemark to perform ‘equal to or better than new models’.

How does the cost of remanufactured medical equipment and technology compare to new products, and what are the long-term financial implications for the NHS?

Remanufactured products deliver clear financial advantages for their next users, since the remanufacturer maintains the product's physical value over the years. Health trusts have spent huge amounts on their IT equipment and consistently favoured brand-new devices rather than extending device lifecycles and using remanufactured models. 

According to Freedom of Information data, NHS Trusts in the UK spent £260m on 401,084 new PCs, at an average cost of £650.54, from 2013 to 2017.

More recently, according to Oxygen Finance, £3.24 billion was spent on ICT-related services across the NHS from 2020-2021, a 33% increase on 2019-2020.

Adopting a reuse model for tech procurement could save the NHS billions without impacting performance.

By adopting second-life laptops steadily, we will see the NHS shift away from the traditional replacement cycle and a reliance on new, which is more environmentally and financially costly.

What are the potential challenges in implementing a widespread remanufacturing strategy across the NHS?

One of the biggest challenges for a broad and complex system like the NHS is shifting mindsets and ways of doing things.

There is still a deep-seated preference for business as usual, which means new is chosen over remanufactured, despite the clear benefits of the latter. By breaking down the myth that “brand-new and shiny” equals better, we will see a change in momentum.

Hopefully the NHS 10-year-plan will accelerate the momentum for the adoption of remanufactured devices.

Procurement policies also need to evolve. Traditional buying frameworks often overlook sustainability in favour of upfront costs and ease of access.

Demonstrating the reliability, cost-effectiveness and carbon savings of remanufactured products can change this. Devices that have performance guarantees, like the BSI Kitemark, can lead this change.

How can remanufacturing contribute to creating a more resilient and localised supply chain for the NHS?

Adopting remanufacturing allows the NHS to obtain high-quality, carbon-neutral devices at scale, thereby minimising supply chain disruption risks.

This strategy decreases the dependence on manufacturing new medical equipment and computers, allowing us to repurpose existing products for renewed use.

This circular model guarantees a reliable, cost-efficient supply of vital equipment, lengthening product lifecycles and decreasing electronic waste.

More than 272 million new laptops are manufactured every year and 160,000 “old” laptops are disposed of every day in the EU alone. However, 70% of these laptops can be reused, which prevents the production of new devices and protects the Earth’s resources and finances.

Already, Circular Computing has remanufacturing as a service to help NHS clients transform their existing laptops into ‘like-new’ devices, enhancing their performance and renewing their value and impact within their organisation. 

What role can technology companies like Circular Computing play in supporting the NHS's circular economy initiatives?

The NHS aims to become the first net-zero national health service by 2040 and companies like ours can help achieve this goal.

Circular Computing, with the world’s first BSI Kitemark for remanufacturing laptops, which certifies these laptops are ‘equal to or better than new’, can assist the NHS in reaching its sustainability objectives.

This commitment alleviates the pressure on the health service, meaning it does not face a Sophie’s Choice between cost saving and achieving its net-zero goals. 

Through working with companies that specialise in the circular economy, the NHS can focus on what it was founded for: to provide excellent healthcare services to patients. With the right partners the NHS will be able to achieve the goal of becoming the first net-zero national health service by 2040.

What policy changes or incentives might be necessary to encourage wider adoption of remanufacturing and circular economy principles within the NHS?

Policy changes must prioritise sustainability to enhance remanufacturing and circular economy principles in the NHS.

Procurement policies should mandate refurbished and remanufactured equipment where possible, ensuring cost savings and waste reduction.

In Ireland, the government aims for 80% of newly procured public sector IT equipment to be remanufactured or meet the highest EPEAT standards this year.

Similar initiatives in our health service can boost remanufacturing adoption. Furthermore, investing in training NHS staff on circular economy benefits and developing accountability frameworks will foster cultural change. This will empower staff to actively support the NHS's circular economy goals.

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