05.03.13
Variations in workforce productivity across the NHS by the Nuffield Trust
The health budget underspend was £1.4bn in 2011/12, despite mounting financial pressure on trusts, many of which have growing deficits, according to a new report by the Nuffield Trust.
It analysed accounts for commissioning and provider bodies from 2003-04 to 2001-12 for the ‘Anatomy of health spending’ report, which highlights the need to understand how the NHS spends money and identifies financial success and failure.
Spending on the NHS has increased rapidly in recent years, but differs significantly depending on the type of care. The proportion of trusts in deficit has been rising steadily since 2007/08, the report shows.
Anita Charlesworth, report co-author and Nuffield Trust chief economist, said: “We will overlook opportunities to meet the efficiency challenge unless we pay close attention to where and how the NHS spends money, and what we get for it.”
In 2011/12, 32 trusts failed to achieve financial balance and nine have reported a deficit for three years or more. Spending on staff fell by 3% in real terms in 2011/12 but there has been “relatively little improvement” in labour productivity of NHS acute hospitals.
The report states: “South West and East of England regions seem to perform relatively well with regard to labour productivity. The South West also has financially robust hospitals and between 2003/04 and 2011/12 acute care spending grew at the lowest rate of any region.”
Dr Andrew Goddard, director of medical workforce at the Royal College of Physicians, said: “This report demonstrates the interconnectivity of funding in the NHS and planning of the medical workforce. A key action for Health Education England (HEE), the new national body responsible for workforce planning, is to address the geographical variation in consultants across the country.
“It is unacceptable that patients in the East Midlands have access to half the number of senior doctors compared to patients in London. The RCP is ready and willing to work with HEE to address these issues.”
Dr Peter Carter, chief executive & general secretary of the RCN said: “Clearly, the NHS is faced with the reality of trying to do more with less. It is important that any savings made as a result of eliminating waste go straight back into frontline patient care.
“We support moves to deliver care closer to home, as nurses in the community can prevent distressing hospital admissions. However the distribution of funds indicates that that this is not happening. We are also concerned about the mixed picture of some trusts being financially healthy while others are consistently on the edge.
“This analysis also makes clear that competition, can have a negative effect on productivity. The Government and individual trusts need to ensure that their focus is not skewed by competition now or in the future.”
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