Department of Health achieves
pharmafile | May 29, 2009 | News story | |Â Â NHSÂ
The Department of Health and NHS achieved a surplus of £1.67 billion during the financial year 2007-08, a much greater amount than forecast.
The money which is left over from the sum allocated by Parliament – is the equivalent of about one weeks funding for the whole NHS and represents almost 2% of total available resources.
The House of Commons public accounts committee said that the quality of financial management at individual NHS organisations has improved.
But it warned that there was a real risk that patients lose out because the NHS is not spending its allocated funding on treating them.
The figure was orginally forecast to be £916 million and in 200607 was just £515 million.
The NHS Confederation, which represents 95% of the organisations that make up the NHS, said the new figures were the result of good financial planning.
Policy director Nigel Edwards said it would also give the NHS greater room for manoeuvre as funding gets squeezed,
"The surpluses generated by the NHS over the 2007-2008 financial year are a testament to sound financial planning and an awareness on the part of everyone in the service of the need to spend public money carefully," he said.
"It means that as the NHS approaches the next few years, when settlements will be tighter and there is flexibility and financial room to move already built into the balance sheet."
He added that the recession means that the NHS needs to ensure quality of care while finding savings at a time when joblessness and stress-related illnesses can cause greater numbers of hospital admissions.
The committee's report follows a study by the Department of Medicines Management at Keele University which said the NHS saved £394 million last year by prescribing generics.
Around £278 million of this saving was made on statins.
The Department of Health has said it is looking for £15 billion in efficiency savings over the next three years.
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