strategies to improve nhs productivity

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©The King’s Fund 2010 Strategies to improve productivity Mark Jennings July 2010

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Mark Jennings, Director of Health care improvements at TheKing's Fund talks through some of the measures that could be taken to improve NHS productivity. This slideshow has been created in conjunction with our report, Improving NHS productivity: More with the same not more of the same.

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Page 1: Strategies to improve NHS productivity

©The King’s Fund 2010

Strategies to improve productivity

Mark JenningsJuly 2010

Page 2: Strategies to improve NHS productivity

©The King’s Fund 2010

Page 3: Strategies to improve NHS productivity

©The King’s Fund 2010

National cost and demand drivers

Page 4: Strategies to improve NHS productivity

©The King’s Fund 2010

£15 to £20 billion

“All bets are off. We need to move away from the NHS being built for growth to being able to sustain itself in a prolonged limitation of resources...The NHS will need to make efficiency savings of £15–20bn from 2011–14.”

Page 5: Strategies to improve NHS productivity

©The King’s Fund 2010

TimeTime

Re

al t

erm

s sp

end

ing

(200

9/10

leve

ls)

Re

al t

erm

s sp

end

ing

(200

9/10

leve

ls)

2001/2 to 2010/112001/2 to 2010/11

2011/12 to 2013/14 on2011/12 to 2013/14 on

The GapThe Gap

More with the same

COST & DEMAND PRESSURES

COST & DEMAND PRESSURES

PRODUCTIVITY IMPROVEMENTSPRODUCTIVITY IMPROVEMENTS

£105bn£105bn

Page 6: Strategies to improve NHS productivity

©The King’s Fund 2010

How we see the gap

Financial gap? – The same with less

Care gap? – More with the same

Page 7: Strategies to improve NHS productivity

©The King’s Fund 2010

Focus

Trusts – new

income focus

PCTs – cash-growth focus

Page 8: Strategies to improve NHS productivity

©The King’s Fund 2010

Focus on how and what we do…

Technical efficiency is doing things right, eg, reducing unit costs by reducing lengths of stay or shifting care to more cost-effective settings out of hospital.

Allocative efficiency is doing the right things, eg, allocating resources to achieve the most health gain for the population served and preventing future hospital admissions.

Page 9: Strategies to improve NHS productivity

©The King’s Fund 2010

Page 10: Strategies to improve NHS productivity

©The King’s Fund 2010

Variations in clinical care

“Variations in care are often idiosyncratic and unscientific with local medical opinion and local supply of resources appearing more important than science in determining how medical care is delivered.”

[J.Wennberg, BMJ, October 2002]

Page 11: Strategies to improve NHS productivity

©The King’s Fund 2010

Unjustified variations in health care cause…

Increased cost

Reduced quality

Page 12: Strategies to improve NHS productivity

©The King’s Fund 2010

Page 13: Strategies to improve NHS productivity

©The King’s Fund 2009

£64m

Prescribing

[Source: NHS Better Care, Better Value Indicators][Source: NHS Better Care, Better Value Indicators]

Page 14: Strategies to improve NHS productivity

©The King’s Fund 2010

Page 15: Strategies to improve NHS productivity

©The King’s Fund 2010

A new NHS paradigm

‘Quality costs’

Health care can only be considered high quality if it is also effective and efficient.

Health care can only be considered high quality if it is also effective and efficient.

Page 16: Strategies to improve NHS productivity

©The King’s Fund 2010

Visit: www.kingsfund.org.uk/quality