Posts Tagged ‘Finance’

Criticism as NHS Managers recruit Efficiency Expert

Thursday, October 20th, 2011

Hospital staff and unions today criticised managers at Lancashire Teaching Hospitals for taking on an “efficiency” consultant to help them achieve financial savings.

Steve Leivers, who is Director of Transformation at Aintree, has joined Lancashire Teaching Hospitals for six months to help them achieve their £21 million efficiency target. It has not been disclosed how much he will be paid for this period.

Workers and unions have however blasted the move and have branded it a waste of money. They assert that any further cuts will adversely affect patient care, and that spending more money on further employment in order to specify areas to target cuts to was counter-productive. They voiced their concerns that the role of efficiency directives should be the responsibility of their current managers and directors to find the most efficient ways of working and provide value for money.

George Dixon, central Lancashire Branch Secretary for UNISON, said that the move to appoint a specialist to make further savings indicates that management resources have been dramatically cut. “We have just been reported as being in the bottom 20 of hospital trusts by the Care Quality Commission when it comes to patient care. Further cuts will impact on staff’s ability to deliver patient care” he stated.

Karen Partington, Chief Executive of Lancashire Teaching Hospitals NHS Foundation Trust, said that the appointment of Mr Leivers as Director of Transformation is hoped to support them in achieving their efficiency target by 2012. He will collaborate with staff to review processes and working practices to identify more effective ways of delivering services.

Ms Partington said that Mr Leivers has a track record of delivering sustainable financial balance in challenging situations, and has previously supported other organisations to make significant savings. Mr Leivers is currently leading a £35m trust wide clinical transformation programme at Aintree.

Despite the best intentions of NHS Managers attempting to target areas for efficiency savings, Trusts may find that they could achieve better results by providing Heads of Service with the right tools to do their jobs. Trusts could seek to implement an Electronic Patient Record (EPR) system such as Therapy Manager, which provides managers with a robust suite of tools to enable on-demand monitoring of key performance measures. The system can report on the Costs of Care and where they are incurred, ensuring managers are supported in clinical decision making which could potentially reduce the financial costs incurred in patient care.

50 NHS Trusts Struggling Financially

Monday, October 17th, 2011

The National Audit Office has found that almost 50 NHS Trusts are struggling financially, with many having to consider merging with others to survive and a handful branded “unviable” in any form.

The study of the 113 non Foundation Trust (FT) Trusts revealed that many hospitals are weighed down by their debts and others have weak leadership and management or deliver poor quality care for patients.

In these cases, Trusts will be unable to meet the Government’s target of becoming semi-independent FTs by 2014, with their situation made worse by the “Nicholson challenge” of recouping £20 billion in efficiency savings by the following year.

Ministers may use taxpayers’ money to bail out failing hospitals or they could be forced to merge with better-performing neighbours, face takeover by private healthcare firms or close down entirely.

Margaret Hodge, the Labour Chairman of the Public Accounts Committee, said that the report asserted that at least 20 Trusts will never achieve FT status in their current form, and as many as 48 are unlikely to obtain FT status unless they substantially improve their financial position.

Failing to make FT status means that Trusts will not have the freedom to take on more private patients and in doing so make more money due to the burden of their Private Finance Initiative (PFI) schemes. These PFI schemes have provided hospitals with modern facilities but mean making large interest payments for decades.

The 48 that are unlikely to qualify will need “additional work” to balance their books, such as £376 million of loans just to support them for each additional 15 working days. All 48 struggling Trusts recently had to draw up plans for their future, known as Tripartite Formal Agreements, and 20 of them are “not financially and/or clinically viable in their current form”.

Seventeen of the “most challenged trusts” are looking for hospitals or private sector firms to take them over but six trusts with the heaviest PFI debts are considered “not viable under any of the tested scenarios”, and are likely to need significant Treasury funding.

While 80% of the 113 non-FT Trusts face financial trouble, 65% have “quality and performance” problems and 39% need improvements in “governance and leadership”.

The Government has announced that they will outline a “national support” system for some Trusts, but has pledged to introduce a rigorous “failure regime” for the first time in the NHS rather than continuing with secret bailouts.

In an increasingly tough financial climate, it is essential that NHS managers have access to tools that in addition to assisting in the efficient running of services also provide information on costs and where they are incurred. In an attempt to improve clarity around outcomes, Trusts could seek to implement an Electronic Patient Record (EPR) System like Therapy Manager which illustrates the true Costs of Care by speciality and by condition, ensuring that the highest quality patient care is provided at the best price.

Original Source The Telegraph

About Pathway Software

Pathway Software (www.pathwaysoftware.com) specialises in the design and development of patient information systems for Allied Health professionals.

Its flagship product, Therapy Manager, is an Electronic Patient Record (EPR) system specifically designed for Therapy Services to provide decision makers with the ability to track and manage clinical activity and analyse cost of care by patient, episode or service. The system also demonstrably reduces administration time and the costs of managing Therapy Services.

More cost-saving directives needed in the NHS

Thursday, September 15th, 2011

The Foundation Trust Network (FTN) has voiced concerns over the lack of dialogue surrounding cost savings within the NHS, telling hospitals that long-term planning will be required in order to successfully achieve service reorganisation.

The FTN has reported that there appears to be no convincing political strategy about NHS commissioners’ investment in service redesign aimed at taking costs out of the secondary sector. They have also stated that health service providers are experiencing uncertainty around where exactly their investments have gone.

It has been reported that Foundation Trusts (FT’s) are currently working towards achieving savings targets of more than 4%. It is also expected that a proportion of these savings will be put towards funding alternative services to help reorganise the way in which NHS care is delivered. These combined savings are hoped to reduce NHS spending by £20 billion over the next three years by dramatically reducing overheads and potentially decommissioning whole services.

The report followed a recent survey of FTN members polling over half of the members who reported experiencing a lack of engagement from commissioners in areas such as preventing hospital re-admissions.

Sue Slipman, Chief Executive of the FTN, asserted that without investment in alternative services, it will not prove possible to judge whether the NHS efficiency gains can be achieved while retaining the quality of services necessary for enhancing the patient experience. She voiced her concerns that providers are being coerced into taking short term measures as opposed to long term solutions, and added that FT’s are not being given the freedom and flexibility they need to acquire the necessary resources. Due to these measures, inefficiencies are bound to remain. Furthermore, she states that the savings challenge is too large for single FT’s to be able to solve alone as it requires a radical re-think about how patients progress through the healthcare system in order for services to be reconfigured to work more efficiently.

The FTN said FT’s would like to be able to plan ahead, and suggested that long-term contracts would give providers more stability and scope for long-term planning. The Department of Health currently issues new contracts each year to reflect new targets.

Slipman continued by stating that cost saving targets requires that demand for treatment be taken out of hospitals with greater provision in community settings. She said that it is widely believed that in order for hospitals to be able to do more with less, care needs to take place within different settings. This will also be of greater benefit to patients, as they will have greater choice in where their treatment takes place.

Furthermore, Slipman added that essential service redesign and reconfiguration remains politically difficult within the NHS which prevents strategic decisions from being made and implemented quickly.

The FTN’s concerns follow similar comments by Mike Farrar, Chief Executive of the NHS Confederation, who stated that few NHS organisations were successfully transforming their services and releasing money in line with the Department of Health’s Quality, Innovation, Productivity and Prevention (QIPP) programme. Without making essential transformational changes, Farrar stated that he expected financial and service-level problems to emerge quickly and frequently.

In order that Trusts can meet cost savings targets in a timely and suitable manner, clinicians and managers need to be provided with the tools to be able to perform to the best of their ability. Trusts could therefore seek to implement an Electronic Patient Record (EPR) system such as Therapy Manager, which provides managers with a robust suite of tools to enable on-demand monitoring of key performance measures. The system can report on the Costs of Care and where they are incurred, ensuring managers are supported in clinical decision making which could potentially reduce the financial costs incurred in patient care.

Original Source The Guardian

About Pathway Software

Pathway Software (www.pathwaysoftware.com) specialises in the design and development of patient information systems for Allied Health professionals.

Its flagship product, Therapy Manager, is an Electronic Patient Record (EPR) system specifically designed for Therapy Services to provide decision makers with the ability to track and manage clinical activity and analyse cost of care by patient, episode or service. The system also demonstrably reduces administration time and the costs of managing Therapy Services.

NHS cutbacks boost the Private Sector

Tuesday, September 13th, 2011

A recent survey of industry figures has revealed that private healthcare firms are experiencing an increase in business caused by the financial squeeze across the NHS in England.

101 influential industry figures were surveyed including Chief Executives, Investors and Advisers. 34% of respondents said that budgetary pressure in the NHS had led to an increased demand for private healthcare.

It is believed that independent providers are benefiting from the growing number of patients who are choosing to pay for their own care after having treatment delayed or denied altogether by an Primary Care Trust (PCT). Self-funding was seen most commonly being seen in treatments such as hip or knee replacement, hernia repair or cataract removal.

David Worskett, Chief Executive of the NHS Partners Network believes that “misguided” decisions of many PCTs can force patients to wait many months for treatment, often delaying until the next financial year. A reduction in overall numbers of referrals due to stricter criteria has also lead to a “rationing by stealth” trend, in some cases restricting or delaying access to treatment. This comes as the NHS strives to make £20 billion in efficiency savings by 2015 whilst simultaneously adjusting to a reduced budget increase.

Mark Varian of Ramsay Healthcare asserts that the boom in private healthcare is directly attributeble to tighter NHS budgets. Furthermore, he reports that the NHS is funding treatment in private hospitals in order to ensure that patients are treated within the 18-week “Referral To Treatment” RTT deadline. Due to extensions in NHS waiting lists, Trusts are using private providers to clear backlogs and ensure targets are not missed. All 34 hospitals and treatment centres run by Ramsay Healthcare signed contracts in June with a number of Trusts to take on some of their caseload, with growing numbers of Trusts are doing the same with other private care providers.

It is also believed that more patients are seeking a private healthcare option due to the expansion of patient choice within the NHS under the “no choice about me, without me” directive.

The survey also revealed that 76% of those questioned agreed or strongly agreed that the uncertainty surrounding the Health and Social Care Bill could potentially harm private healthcare providers. Over 80% believe the public and medical backlash against the reforms has prompted many investors to leave the sector because of the risks involved.

Conversely, 55% of those polled think that handing control of £60 billion of the NHS budget to GP-led clinical commissioning groups in 2013 will ultimately produce a more competitive market in healthcare.

As it becomes an increasing demand that Trusts align themselves alongside private providers in a competitive environment, they could seek to implement an Electronic Patient Record (EPR) system. Therapy Manager is an EPR system which illustrates the true Costs of Care by speciality and by condition, ensuring that the highest quality patient care is provided at the best price. The system also provides a simple mechanism to capture and audit PROM’s as well as providing the opportunity to analyse outcomes versus other clinical and activity parameters captured during the patient journey, ensuring that patient choice is well supported.

Original Source The Guardian

About Pathway Software

Pathway Software (www.pathwaysoftware.com) specialises in the design and development of patient information systems for Allied Health professionals.

Its flagship product, Therapy Manager, is an Electronic Patient Record (EPR) system specifically designed for Therapy Services to provide decision makers with the ability to track and manage clinical activity and analyse cost of care by patient, episode or service. The system also demonstrably reduces administration time and the costs of managing Therapy Services.

NHS Finance bosses miss productivity targets

Thursday, April 21st, 2011
Less than a month into the financial year, NHS Finance Directors are already warning that their plans to improve productivity in 2011-12 may not be met.

According to a King’s Fund analysis published yesterday based on the opinions of a panel of 26 Finance Directors including Primary Care, Hospital and Mental Health Trust directors, more than two thirds reported that they may fall short of their productivity targets for 2011-12.

Click here to read the full HSJ article

About Pathway Software

Pathway Software (www.pathwaysoftware.com) specialises in the design and development of patient information systems for Allied Health professionals.

Its flagship product, Therapy Manager, is an Electronic Patient Record (EPR) system specifically designed for Therapy Services to provide decision makers with the ability to track and manage clinical activity and analyse cost of care by patient, episode or service. The system also demonstrably reduces administration time and the costs of managing Therapy Services.

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