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Strategies to improve productivity Mark Jennings July 2010
 
National cost and demand drivers
£15 to £20 billion “ All bets are off. We need to move away from the NHS being built for growth to being able to sustain itself in a prolonged limitation of resources...The NHS will need to make efficiency savings of £15–20bn from 2011–14.”
Time Real terms spending  (2009/10 levels) 2001/2 to 2010/11 2011/12 to 2013/14 on The Gap More with the same  COST & DEMAND PRESSURES PRODUCTIVITY IMPROVEMENTS £105bn
How we see the gap Financial gap?  –   The same with less  Care gap?  – More with the same
Focus Trusts – new  income focus PCTs – cash- growth focus
Focus on how  and  what we do… Technical efficiency  is  doing things right,  eg, reducing unit costs by reducing lengths of stay or shifting care to more cost-effective settings out of hospital. Allocative efficiency  is  doing the right things,  eg, allocating resources to achieve the most health gain for the population served and preventing future hospital admissions.
 
Variations in clinical care “ Variations in care are often idiosyncratic and unscientific with local medical opinion and local supply of resources appearing more important than science in determining how medical care is delivered.”  [J.Wennberg, BMJ, October 2002]
Unjustified variations in health care cause… Increased cost Reduced quality
 
£64m Prescribing [Source: NHS Better Care, Better Value Indicators]
 
A new NHS paradigm ‘ Quality costs’ Health care can only be considered high quality if it is also effective and efficient.
Visit: www.kingsfund.org.uk/quality

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Strategies to improve NHS productivity

  • 1. Strategies to improve productivity Mark Jennings July 2010
  • 2.  
  • 3. National cost and demand drivers
  • 4. £15 to £20 billion “ All bets are off. We need to move away from the NHS being built for growth to being able to sustain itself in a prolonged limitation of resources...The NHS will need to make efficiency savings of £15–20bn from 2011–14.”
  • 5. Time Real terms spending (2009/10 levels) 2001/2 to 2010/11 2011/12 to 2013/14 on The Gap More with the same COST & DEMAND PRESSURES PRODUCTIVITY IMPROVEMENTS £105bn
  • 6. How we see the gap Financial gap? – The same with less Care gap? – More with the same
  • 7. Focus Trusts – new income focus PCTs – cash- growth focus
  • 8. Focus on how and what we do… Technical efficiency is doing things right, eg, reducing unit costs by reducing lengths of stay or shifting care to more cost-effective settings out of hospital. Allocative efficiency is doing the right things, eg, allocating resources to achieve the most health gain for the population served and preventing future hospital admissions.
  • 9.  
  • 10. Variations in clinical care “ Variations in care are often idiosyncratic and unscientific with local medical opinion and local supply of resources appearing more important than science in determining how medical care is delivered.” [J.Wennberg, BMJ, October 2002]
  • 11. Unjustified variations in health care cause… Increased cost Reduced quality
  • 12.  
  • 13. £64m Prescribing [Source: NHS Better Care, Better Value Indicators]
  • 14.  
  • 15. A new NHS paradigm ‘ Quality costs’ Health care can only be considered high quality if it is also effective and efficient.