The Department of Health is to expand the number of productivity indicators on which trusts are compared as the first set of figures revealed the NHS could save £2.2bn a year if it improved its efficiency.

The Department of Health is to expand the number of productivity indicators on which trusts are compared as the first set of figures revealed the NHS could save£2.2bn a year if it improved its efficiency.

The ‘Better care, Better Value’ indicators show how each trust and primary care trust has fared against 16 indicators, such as reducing length of stay and improving cash flow.

The lists show trusts how much money they can save on each indicator if they bring their performance up to the level of the top 25 per cent.

The trust identified as having the potential to make the biggest productivity savings is University of Leicester Hospital trust - in health secretary Patricia Hewitt’s constituency. If it brought its performance up to the standard of the top 25 per cent, it could save almost£30m a year.

The indicators, which will be published quarterly, were drawn up by the NHS Institute for Innovation and Improvement.

Chief executive Professor Bernard Crump said the number of indicators would grow over the next year to include performance on the uptake of nationally-agreed targets and the number of procedures carried out by individual consultants.

Foundation trusts are not included in some of the tables, although Professor Crump said he would like to see this change if they were to provide information voluntarily.

Health minister Andy Burnham told HSJ that improved performance on productivity was vital if the department was to persuade the Treasury or the public that the NHS deserved more money.

‘I don’t think we can say: Come up with more funding for the NHS unless we can demonstrate that the NHS can spend what it has to the maximum effect,’ he said.

The£2.2bn savings break down into:

  • *£975m from reducing average length of stay in hospital;
  • *£510m from reducing the number of pre-operative bed days;
  • *£348m from reducing unnecessary admissions;
  • *£278m from reducing unnecessary referrals to outpatient departments;
  • *£73m from better management of surgical thresholds; and
  • *£16m from increased rates of day-case procedures.
  • Each trust has been sent a document comparing their performance with the best and flagging up whether there was a cause for concern. Professor Crump said the information would allow trusts to decide which indicator to focus on first.

     

 

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