Yes, I've heard about this too... apparently some NHS trusts wouldn't allow purchases to be made unless certain thresholds were met (i.e. you're down to your last X items, and you need to order a minimum of Y), so if one hospital was running low, but didn't need Y number of units (and no-one else in the same trust could take some off their hands), they were effectively SOL.
It came to stationery, items like loo roll and the like that even when ordered in those exorbitant (i.e. Y number of items) numbers, the price was technically still more than what you could get the *same* items from Amazon or your local Tesco (or B&M) from.
But because some faceless commercials manager somewhere in the hierarchy signed a supplier agreement that locked them into such ludicrous contracts, and that faceless manager couldn't possibly lose face, the people at the coal face (i.e. department heads/head nurses) were forbidden to buy from alternate sources.
That kind of crap just *really* winds me up, and it's something that costs the NHS extraordinary amounts of money. But, just to be clear, this is not limited to the NHS. It happens in government departments too.