Government hopes World Class Commissioning can save money
pharmafile | November 27, 2008 | News story | Sales and Marketing |Â Â NHS, primaryÂ
The government is looking to the NHS to produce huge new savings as part of its rescue package for the ailing UK economy.
Chancellor Alistair Darling hopes to save £5 billion in public spending in 2010-11, and has earmarked the health service to provide the lion's share.
The measures were included in Darling's Pre-Budget Review (PBR) and are meant to counterbalance the temporary tax cuts and public spending in other areas aimed at reviving the UK's stricken economy.
The PBR says the health service could provide between £1.35bn and £2.5bn in cost savings, including new economies in how much land it uses to build new hospitals and in how services are commissioned.
The government says better use of building land could save up to £3 billion, and up to £100 million per annum of estate costs over the next spending period.
Meanwhile, the Department of Health will allow PCTs to extend the use of private finance system the Local Improvement Finance Trust (LIFT) to improve buildings and infrastructure.
The other area where the government wants to see saving in World Class Commissioning (WCC) one of its flagship reforms meant to streamline services around the patient.
The government has always seen the potential to save money by simplifying services, often transferring them to primary care from hospitals, but now looks set to put a figure on it for the first time.
The Chancellor's report says PCTs are taking greater control over how services are organised, allowing them to "unlock cashable value for money improvements across the £70 billion of commissioned health services."
Specific targets for WCC are now expected to be announced in the Budget in March next year, and could target savings in excess of £1 billion.
The government also wants to see new efficiencies in tariff prices paid by PCTs to hospitals, and see the system extended to other areas of the health service.
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