Press release today from the English Department of Health
David McDaid
LSE Health and Social Care
Also at http://www.info.doh.gov.uk/doh/intpress.nsf/page/2002-0449?OpenDocument
NEW FIGURES SHOW THERE IS LESS INEQUALITY IN THE NHS
Variation in NHS costs across the country is narrowing
The difference in costs of treatment across the NHS has reduced considerably, according to new figures published today. If the variations this year were as high as last year, the cost of providing services would be around £500 million pounds higher.
· The range of costs for hip replacements has reduced by 51% across the country. At the same time the number of hip replacement performed rose by 4%
· Day case admissions for asthma have increased slightly to 36,640 admissions but the range of costs has decreased by 44% from £3,869 to£2,173
· The range of Index scores for acute hospitals has reduced by 46% (125 to 70) from the 2001 figures
Welcoming the publication of the National Schedule of Reference Costs 2002 for each NHS trust in England and services provided in the community, Health Minister Lord Philip Hunt said:
"I am pleased that we are beginning to reduce the variability of costs for the same treatments across the country. Although we still have work to do, our aim remains high quality, yet cost-effective services."
The overall Reference Costs Index is being published on a regional as well as national basis. This allows people to compare the overall costs of their local hospital or community service provider with others in the same geographical area. This is important if services are to meet the varying health needs of different parts of the country.
Lord Hunt said:
"From 2003/4, we will be introducing a new system of "payment by results", bringing about fundamental changes to the way that funds flow through the NHS. One of the elements of the scheme will be a nationally agreed set of prices that all of the NHS would use when commissioning services; the NHS reference costs will be a benchmark for this process.
"Publishing an increasing level of detail on the costs of our health services, we give the public and health workers an understanding of the use of public resources. No other health system shares such detail on its costs in so open a way.
"This information is shared widely to provide a basis for comparison at organisational and individual treatment level. Areas of concern and variance will be reported to the Board of individual organisations and appropriate action will be taken.
"Within the costs, there are still some areas for concern although improvements have been made across the board. Some cost variations are expected for example, where the services provided are very specialist or complex. However, as we continue to bring quality and cost information more closely together, I look to the NHS to study this closely and rigorously examine their own organisation's performance.
In order to get the best out of the extra resources for the NHS and to facilitate the other NHS
reforms announced in the budget, One of the elements of the scheme - a nationally agreed set of prices (tariff) - will be based on the Reference Costs data.
Notes to Editors
1. The Reference Costs publication shows the costs of individual treatments, procedures, outpatient appointments, tests, home based treatments etc. for a comprehensive range of NHS services. It shows the national average cost as well as the range of costs for each type of treatment across England.
2. The National Schedule of Reference Costsprovides detailed information on an extended range of NHS services. It covers approximately £25 billion of NHS expenditure approximately 89% of hospital and community health services expenditure in 2001/02. This amounts for almost 89% of hospital and community health services expenditure.
3. The information in the Schedule is based on costs and activity in the financial year 2001/02, which ended on 31 March 2002. The number of NHS organisations providing information has increased due to the inclusion of new Primary Care Trusts, Personal Medical Services plus pilots and NHS Trusts providing community services.
4. Further details of the consultation document, Reforming NHS Financial Flows: introducing payment by results which sets out these proposals in more detail, can be found on the Department of Health website on www.doh.gov.uk/nhsfinancialreforms
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