I don't think that the "stiff competition" argument stacks up. All the major manufacturers seem to have an "understanding" it's like an unofficial cartel. There have been deals stuck where certian companies have put in a ridiculous quote for an installation so that their "rival" gets the work, and they get a free run at the next major installation. I fully understand the economies of scale argument that if they sold 1 million items then they could charge a lot less for their stuff but even so there is a lot of profiteering going on.
The bosses at NHS HQ should be driving this issue. If they are asking us to tighten our belts then they should be aguing with external suppliers to get a better deal.