By Vivienne Russell
17 December 2009
The NHS has been urged to go ‘further and deeper’ in generating cash-releasing efficiency savings.
The NHS Operating Framework, published this week, set out an overview of the priorities for the health service next year and how they will be measured.
The NHS is already expected to produce cashable efficiencies of 3% for each year of the current spending review period, which ends in 2010/11.
But the framework document, published on December 16, made it clear that, in line with other public services, the health service would be required to do more.
The document states: ‘In the current economic climate, it is appropriate that the NHS with the other public services goes further and deeper in making efficiencies to contribute to returning the economy to balance in the timescales identified in the Pre-Budget Report. Our ambition is to achieve very substantial efficiency savings by 2010/11.
‘Accordingly, both [primary care trusts] and NHS trusts will be expected to explore the opportunities identified under the cross-government Operational Efficiency Programme, where further efficiency savings can be secured from 2010/11.’
These include greater use of shared services for back-office operations such as finance and human resources, increased use of collaborative procurement and more commercial and efficient use of assets, particularly property.
NHS Confederation chief executive Steve Barnett said: ‘This year’s operating framework provides a further reminder of the scale of the efficiency savings the NHS needs to make if it is to survive the biggest financial challenge it has faced in a generation.’
The framework confirmed that PCTs could expect to receive an average allocation increase of 5.5% with a minimum floor growth of 5.1%. This represents a total increase of £8.6bn in direct PCT funding over the current financial year and 2010/11.
Anna Dixon, director of policy at the King’s Fund, said: ‘The operating framework sends a strong message to the NHS about the scale of the financial challenge ahead and the action that needs to be taken now. Specific priorities for the service remain the same as last year – reducing healthcare-acquired infections and maintaining target waiting times – but the efficiency and productivity requirements appear greater than ever.’
She added that requirements to carry forward £1bn of surplus and fund pharmacy, ophthalmology and dentistry from efficiency savings gave PCTs little room for manoeuvre.
17 December 2009
The NHS has been urged to go ‘further and deeper’ in generating cash-releasing efficiency savings.
The NHS Operating Framework, published this week, set out an overview of the priorities for the health service next year and how they will be measured.
The NHS is already expected to produce cashable efficiencies of 3% for each year of the current spending review period, which ends in 2010/11.
But the framework document, published on December 16, made it clear that, in line with other public services, the health service would be required to do more.
The document states: ‘In the current economic climate, it is appropriate that the NHS with the other public services goes further and deeper in making efficiencies to contribute to returning the economy to balance in the timescales identified in the Pre-Budget Report. Our ambition is to achieve very substantial efficiency savings by 2010/11.
‘Accordingly, both [primary care trusts] and NHS trusts will be expected to explore the opportunities identified under the cross-government Operational Efficiency Programme, where further efficiency savings can be secured from 2010/11.’
These include greater use of shared services for back-office operations such as finance and human resources, increased use of collaborative procurement and more commercial and efficient use of assets, particularly property.
NHS Confederation chief executive Steve Barnett said: ‘This year’s operating framework provides a further reminder of the scale of the efficiency savings the NHS needs to make if it is to survive the biggest financial challenge it has faced in a generation.’
The framework confirmed that PCTs could expect to receive an average allocation increase of 5.5% with a minimum floor growth of 5.1%. This represents a total increase of £8.6bn in direct PCT funding over the current financial year and 2010/11.
Anna Dixon, director of policy at the King’s Fund, said: ‘The operating framework sends a strong message to the NHS about the scale of the financial challenge ahead and the action that needs to be taken now. Specific priorities for the service remain the same as last year – reducing healthcare-acquired infections and maintaining target waiting times – but the efficiency and productivity requirements appear greater than ever.’
She added that requirements to carry forward £1bn of surplus and fund pharmacy, ophthalmology and dentistry from efficiency savings gave PCTs little room for manoeuvre.
