16 June 2006
The Department of Health should involve NHS bodies more closely in costing initiatives, finance managers said this week.
There was an outcry last year when it emerged that the DoH had underestimated the cost of new pay contracts, contributing significantly to the service's current financial difficulties.
The Healthcare Financial Management Association said greater trust involvement would have 'tempered the optimism of the department's costings'.
The DoH should announce financial allocations and guidance on how the money should be spent well in advance of each new financial year, it added.
This was one of the ten points put forward by the HFMA to improve financial stability. Another called for finance managers to gain new skills to adapt to reforms like payment by results.
HFMA chair Phil Taylor said: 'The plan highlights action that will need to be taken on several fronts to ensure financial health is restored and sustained.'
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