‘Break even culture’ must end, Hewitt tells NHS
pharmafile | January 27, 2006 | News story | |Â Â Â
Health secretary Patricia Hewitt has unveiled the strategic and financial framework for the NHS in 2006/7, re-stating the government's pledge to push ahead with radical reform.
Hewitt said the patient choice agenda, practice based commissioning and payment by results would all be extended during the period, with the aim of improving patient care and creating a self-regulating NHS.
A handful of areas will be made top priorities for the year – including reducing health inequalities, cutting cancer waiting times and reducing cases of the MRSA superbug and improving sexual health.
The government has also made it clear that better financial management was now essential in the health service.
Government funding in the NHS will slow in 2008, and the Department of Health is now determined to instil greater fiscal discipline.
"Excellence in financial management must be a prerequisite for high quality, sustainable services," said Hewitt.
"A break even culture dependent on balance sheet adjustments and hand-outs stops next year. Planning for a surplus should become the norm for the service.
"The requirements are challenging but achievable. The underlying aim is to support the fundamental reform of the health system, creating an NHS that delivers better services for more patients.
The national tariff, the payment system underpinning Payment by Results is to be increased by 1.5% for 2006/7, which the government says is sufficient to cover inflation in underlying costs, adjustments identified in the baseline exercise and a 2.5% efficiency requirement.
The new guidance also sets out a requirement for PCTs and NHS Trusts working with their Strategic Health Authorities to re-confirm their investment plans, including major capital developments and PFI schemes.
This exercise could mean the cancellation of a number of long-standing plans, such as the redevelopment work already begun at Barts and The Royal London but now threatened due to lack of funds.
The Department of Health has indicated patient choice and the movement of services into primary and community settings should be seen as the financial priority above such projects, a directive likely to cause further disquiet in the NHS.
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