NHS productivity barely rose last year

16 Dec 10
Productivity in the NHS has remained 'virtually static' over the past year, with little progress made towards the service's £20bn savings target, according to the Audit Commission
By Lucy Phillips

16 December 2010

Productivity in the NHS has remained ‘virtually static’ over the past year, with little progress made towards the service’s £20bn savings target, according to the Audit Commission.

A report published today by the spending watchdog found few signs of change during 2009/10 in the areas of the NHS that need to make the savings by 2014.

Despite heavy investment by some primary care trusts in community services to provide more cost-effective care outside hospitals, there was ‘no identifiable shift’ across the country, the auditors said. This is a crucial part of the health service’s Quality Innovation Productivity and Prevention programme. Emergency admissions to hospitals continued to grow at 3% a year and outpatient numbers continued to rise.

Andy McKeon, managing director of health at the Audit Commission, said: ‘It takes time to turn the tanker, but there was little sign of these changes beginning to happen in 2009/10.

‘The reassuring message is that there are still big savings to be made. But to do so, commissioners and providers must look differently at how they manage and finance an evolving NHS.’

The report More for less 2009/10 suggests trusts could save more than £200m per year by doing more day surgery; £300m by reducing the cost of nursing per hospital bed to the average cost; and £700m by reducing emergency admissions to the average number.

Hospital readmissions, which have risen by 7% over the past five years and cost the service £1.5bn in 2009, could be lowered by more effective public health strategies on smoking and alcohol, the commission said.

The NHS Confederation claimed efficiency measures were already under way. Nigel Edwards, the body’s acting chief executive, said: ‘Everyone in the NHS understands the challenge involved in finding £20bn of savings in the next four years and work is already being done to find efficiencies.

‘We believe the NHS has the people, the ideas and the will to come through this period in good shape and continue providing high standards of care for patients.’

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