The King’s Fund has raised doubts over government claims that the NHS are making significant progress towards their £20 billion savings target.
Figures released this week by the Department of Health suggested that an “encouraging” £5.8 billion had been saved in the last financial year. If this trend continues, the £20 billion savings target should be met by the target of 2015.
NHS managers have been told to recoup savings through productivity gains and by following the Quality, Innovation, Productivity and Prevention (QIPP) programme instead of simply making cuts. Senior NHS officials have also stated that they expect that these yearly savings will continue after the “Nicholson Challenge” is met in 2015.
Professor John Appleby, Chief Economist at the King’s Fund Think Tank, said that there was a however lack of detail about where the savings were being made. He states that ministers have also included savings from a pay freeze given to staff and a reduction on hospital funding, stating that these should be regarded as cuts as opposed to productivity gains. Appleby also voiced concerns that cuts could lead to a reduction in service quality, whilst pay freezes could remove the incentive for staff to perform at a high level.
David Stout, of the NHS Confederation, said while the figures were good news they were probably down to the “easier savings”. He asserted that the most challenging savings recouped from large scale organisational changes were still to be made.
To ensure that efficiencies are achieved without potentially damaging cuts to the workforce being made, Trusts could seek to implement an Electronic Patient Record (EPR) system such as Therapy Manager. The system provides not only a more streamlined and efficient working practices which reduces administrative and clinical input, but has the capacity to report on exactly where costs are being incurred to ensure cuts are being directed towards the correct services, and not just to resources.
Original Source BBC News
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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