McKinsey review of national structure to cost nearly £1m

In July, Matt Hancock ordered a review of the way NHS Digital, NHSX and NHS England/Improvement work together to drive digital transformation across the NHS.

Earlier this week, it emerged the consultancy had worked on the review during August and September after being awarded a contract by the Department of Health and Social Care.

HSJ has now learned that McKinsey’s contract has been extended for an unknown period of time, and that the DHSC, NHS England/Improvement, and NHS Digital are jointly funding the work.

The review is being led by new NHS Digital chair Laura Wade-Gery.

NHS Digital told HSJ the initial cost of McKinsey’s work on the review was £706,000 (including VAT) – of which NHSD contributed £306,000.

But, as a result of the extension, the organisation has been asked to pay a further £200,000 (including VAT) towards the overall cost. This takes the total amount to more than £900,000, without factoring in costs towards the extention contributed by NHSE/I and DHSC. 

NHSE/I referred HSJ to DHSC when asked what they had contributed. The DHSC had not responded to HSJ at the time of publication.

It is not clear yet what McKinsey’s role in the review is because the section describing this in the original contract has been redacted. Redactions were also applied to a section about “alternative pricing”.

In July, McKinsey was hired to review the governance and form of NHS Test and Trace.

In 2018, NHS Improvement paid McKinsey £500,000 to help clarify its purpose and work on a new organisational development programme.

The technology review is expected to be completed later this year, although a date has not been publicly confirmed.