New NHS ratings take tougher line on financial performance
pharmafile | March 15, 2006 | News story | |
New NHS performance ratings will put equal emphasis on a trust's quality of care and financial management.
The independent watchdog, the Healthcare Commission, will carry out its first annual Health Check ratings this year, and the new focus on finance is intended to help address the health service's increasing budget problems.
Chief executive Anna Walker said: "Quality of care and finances are inextricably linked. They are two sides of the same coin. If you don't have good financial management then eventually the care of patients will suffer.
"So we will be tougher on organisations that manage their resources poorly."
The NHS is heading for a record net deficit that could reach 800 million this financial year, at a time when more money than ever is being invested in the health service.
The body that represents NHS managers, the NHS Confederation, agreed financial transparency was needed to meet the current challenges, but denied poor finances were automatically detrimental to good patient care.
The confederation's chief executive, Dr. Gill Morgan acknowledged that making the financial situation of many trusts clearer would be very challenging 'given the current climate.'
She added: "We know that good care and efficiency go hand in hand. But splitting the rating will also demonstrate that even where organisations have financial problems, they can still provide excellent clinical care for patients."
The Health Check replaces the star ratings system, which put finance and clinical services management into one overall assessment.
The first Health Check will be published in October with ratings that score trusts' use of resources and quality of care on a four-point scale from 'excellent' to 'weak'.
Use of resources will be assessed through a range of financial measures including a trust's financial planning and value of money, and not just whether it has balanced its budget as under the old star ratings. It will also be harder to achieve good scores for financial performance.
The quality of care rating will be considered against basic Department of Health care standards as well as how well trusts meet existing government targets.
Health secretary Patricia Hewitt said: "This will give patients a clear picture of the quality of service – which is what matters most – while also making it essential to get the best possible value for money.
"If money is used more effectively, more resources will become available for new drugs and to speed up treatment," she added.
Suggested areas the Health Check could focus on in 2007 have been put out to consultation. They are:
- Is care safe and clinically effective?
- Are services accessible and patient focused?
- Is public money being used effectively and efficiently?
- Is action being taken to improve and protect the health of local people and tackle inequalities?
The consultation runs until 25 May 2006, and more information is available on the Healthcare Commissions website – www.healthcarecommission.org.uk.
