The use of 'master vendor' contracts in the NHS has been given a shot in the arm after Reed Health Group won two major deals to manage the recruitment of temporary health professionals in London.

The contracts were awarded by the North West London Health Authority, and a group of 13 NHS Trusts in south London. It follows the success of a one-year 'master vendor' contract in 2005-2006 in north-west London, which cut expenditure on temporary staff from £30m to £15m.

The new contracts are for the recruitment of a range of health professionals, such as pharmacists, radiographers, and dieticians. They run for three years (2006-2009). Previously, different Trusts and departments had used a range of different recruitment agencies.

Ian Jackson, primary care commissioning manager of Ealing Primary Care Trust said: "The North West London 'master vendor' agreement has exceeded my expectations massively in terms of financial savings and fill rates."

Reed says that savings have been boosted because under the National Framework Agreement, no temp-to-perm fess are payable. According to Reed, other features of the contract include tighter budgetary control, and better management information systems.

Mansel Chamberlain, procurement director at North West London Procurement Confederation, said: "The master vendor system has delivered substantial cost benefits, but even more significant is the level of information available."

Steve Cheetham, divisional director of Reed Health Group, said: "Acting as the central 'master vendor', and using other agencies to supply any other staff we cannot supply ourselves, we provide a central point of contact for all departments within the Health Authority, and ensure that the agreed rates of pay are adhered to.

"We will enable the strategic health authority to eradicate duplication, cut administration time, and save money that could be re-invested in frontline services."