NHS
trusts — Funding
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The
cost of funding NHS trusts
The NHS was
confirmed as the government’s biggest spending area in the
Chancellor’s 2004 UK comprehensive spending review. A major
funding boost will take investment in the NHS from £69bn in
2004/05 to £92bn by 2007/08 — a year on year rise of
7.1 per cent. NHS influencers need to remember that the hospital
sector consumes a large part of this. So note that at the same time
the government has also published its Treasury public service agreements
on health. One new target around chronic disease management reflects
an attempt to create new incentives to reduce emergency hospital
admissions.
Primary care accounts for around 90 per cent of all healthcare interventions
and yet it will receive only about 40 per cent of the £69bn.
So for 10 per cent of healthcare, NHS trusts will therefore have
received over £41bn for 2004/05. Attempting to move services
into the primary and community setting and preventing hospital admission
not only makes good economic sense but also is likely to be appreciated
more by patients.
There is a growing
movement amongst PCTs to try and get hold of some of the large amounts
of money consumed in the hospital sector. This will be achieved
by not referring some patients to hospitals, but dealing with them
in the primary care setting, and by taking some services out of
the acute sector altogether (moving them into the community sector).
The new GP contract will in fact further stimulate this release
of resources as will the growing number of GPs with special interests.
It would certainly be beneficial for NHS influencers to understand
how funding flows to the NHS trusts, particularly in high-cost specialty
areas like cancer.
The
Wanless reports
The first Wanless
report in 2002 called for a vast cash injection of new monies over
the following two decades — up to a maximum of £184bn
by 2022 (three times the current level). The report’s estimates
of how much the new NHS will cost are based on three scenarios:
- Solid progress
— where good progress is made
- Slow uptake
— where there is little change
- Fully engaged
— where great advances are made
Note that the
vision of the future NHS workforce is one in which many of the first
contacts between patients and the health service will be provided
by nurses or other health and social care professionals in community
settings. These services might cover minor injuries, minor surgical
procedures, counseling, laboratory work and care of older people.
Practice nurses, nurse practitioners and nurse consultants can expect
their roles to continue to expand.
See Securing
our future health: taking a long-term view.
The second Wanless
report in spring 2004 made a number of recommendations to government
concerning improvements that needed to be made in the nation’s
public health in areas like obesity and sexual health. A major white
paper on public health is expected in late 2004.
The
impact of Delivering the NHS Plan on hospitals
Delivering
the NHS Plan: next steps on investment, next steps on reform
spells out where all the promised new money will be going, including
the acute sector.
The promises include
40 new hospitals and 500 more primary care one-stop centres by 2007.
More nurses, more doctors and more hospital beds are promised. Details
on the payment by results system appeared for the first time.
An NHS bank was introduced
to deal with overspends and debt in the NHS and social services
are to be fined for bed blocking, even though it is generally felt
that they are currently under-resourced by government. There were
also proposals for hospitals to be allowed to cross-charge local
authorities for the cost of delayed discharges, but they would also
face financial penalties for emergency readmissions under the scheme.
Good news for some companies, as NHS influencers should be able
to link in product messages in areas like asthma, chronic obstructive
pulmonary disease (COPD) and mental health.
The document contains
an interesting chart, comparing the 1948 NHS model with the new
model required for the 21st century. The rigid professional lines
are to move to ‘modernised flexible demarcations between professions’,
and as regards to patients, the world will move from one where they
are patronised to one where there is choice of where and when they
can get treatment.
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