Copy of NHS 'unable to track full costs of treating patients'

16 May 11
NHS organisations are 'struggling' to identify the full costs of treating patients, according to a report published today by the Audit Commission.
By Helen Mooney

16 May 2011

NHS organisations are ‘struggling’ to identify the full costs of treating patients, according to a report published today by the Audit Commission.


Using diabetes patients as an example, the auditors found that poor quality data across outpatient and community services was a major barrier to accurately costing different parts of care and treatment.

The report, Costing care pathways: Understanding the cost of the diabetes care pathway, was drawn up with the Association of Chartered Certified Accountants.

It highlights how organisations can use nationally available data to chart spending at a ‘high level’ for various conditions. NHS organisations can then use the information to help track changes in care ‘pathways’ – and the impact on costs.

The data could also be used to compare costs between primary care trusts and to identify possible areas for savings, the report says.

For example, the average primary care trust inpatient spend was found to vary from £19 to £175 per diabetic patient. This could be mapped against other data showing the biggest driver of cost is diabetes medication, which accounts for three-quarters of the cost of diabetes care.

Andy McKeon, managing director for health at the Audit Commission, said that NHS organisations needed to find ‘better ways’ to cost the changes they were introducing to patient pathways.

 ‘Our report shows what can be done using reliable national data to cost the diabetes care pathway. PCTs can also use it to compare their spending and to identify areas where they are likely to make the most savings and improve care.’

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