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28.09.18

NHSI and NHS England face budget cuts of 20% as part of joint model

NHS Improvement and NHS England face having to cut their costs by 20% as they try to deliver a single operating model together in plans discussed in an NHS England board meeting yesterday.

The board papers from the meeting conclude that in order to have a “sharper focus on improving productivity and efficiency,” the two organisations must have a “shared commitment to deliver 20% efficiency” within the new operating model.

This means they must both cut their costs by 20% from a combined annual budget of around £686m - £508m for NHS England and £178m for NHS Improvement.

At a public meeting on May 24, boards from both NHS England and NHS Improvement committed to delivering a new joint operating model which would involve creating integrated regional teams and aligning appropriate corporate functions.

The paper says the purpose is to “transform the ways of working to provide a single system view” and “shared leadership” to push forward integrated care across England.

The two organisations are not and can not be merged, but will be working together in a joint enterprise to “collectively deliver greater value for the NHS,” and through delivering joined up services, the 20% efficiencies will be made.

According to the new model, NHS system-led decisions will be made jointly and with “clear accountability” for all core activities.

The paper, titled ‘Next steps on delivering a single operating model and shared culture,’ also says the new aligned leadership will consist of 20 NHS Executive Group members.

They will be responsible for developing “an integrated strategy” building “the long-term plan for the NHS,” as well as a set of clear actions to “ensure effective and consistent implementation of priorities.”

The paper said “since May, we have progressed this work” and “we are not proposing that our two boards are brought to alignment with the single executive governance model.”

The new model is due to be discussed for final approval by both boards at the end of November.

Top image: georgeclerk

 

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