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A brief history of NHS funding over the last ten years… Prof John Appleby Chief Economist King’s Fund
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Bust, boom, bust? 1997-2000: Stick to Conservative spending plans 1999/2000: Blair announces NHS funding boost 2002: Derek Wanless forecasts future funding needs 2007 CSR: slow down in NHS funding growth…
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From £44 billion… …to £130 billion… A real increase of 110%
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From £1 in 20 in the entire economy spent on the NHS… …to £1 in 12
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After years of parsimony… …political decision to spend more… …but growth slows (it will feel like a cut)…
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Historically, UK has lagged behind EU-15 countries… …but now catching up… On target for Wanless recommendations?…
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The £64 billion question: Where did the money go?
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…higher costs Inflation absorbed £18+billion…. …leaving around 56% of the cash increase to buy extra things
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…higher pay costs Pay inflation: up 80% in ten years…. Large pay awards for doctors in particular as a result of new contracts ….
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…more staff A quarter of a million new NHS staff over ten years…. But last few years have seen minimal increases as NHS deals with deficits and plans for a tighter financial future
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…shorter waiting times …and waiting times reduced massively: virtually no one waiting more then 6 months…. Waiting list now at its lowest since 1974….
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…more patients 11% increase in elective admissions….
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…more, more, more! Virtually all NHS Plan ‘shopping list’ targets met: –100 new hospitals –Modernising 3,000 GP premises –75% of all MRI/CT scanners and linear accelerators now new… –But, problems with ICT investment –…backlog maintenance…single rooms…
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….value for money? Higher unit costs Lower admissions per consultant and per nurse…. Official productivity measures show downward trend… Poor financial control (deficits…)
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…greater satisfaction? Net satisfaction with NHS overall highest it has been since 1980s….(sham e about NHS dentistry…)
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www.kingsfund.org.uk
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