But there is a pocket of success in Greater Manchester—let’s build that elsewhereby Elaine Fischer / February 16, 2017 / Leave a comment
In his major interview last week on the pressure the NHS is facing, Jeremy Hunt said that the healthcare service would radically improve due to the government’s NHS “plan.” That plan aims to divide the country into 44 areas, each charged with developing a “Sustainability and Transformation Plan,” or STP. These set out how the areas will work together locally to modernise healthcare and also to integrate it with social care. The government’s problem is that STPs are not on track to deliver the wide scale reforms that are needed.
The hope for STPs was, and remains, that they would overcome the highly-fragmented nature of the NHS. New research by think tank Reform suggests that they have not managed to do that. One of the reasons STPs struggle is because the way NHS organisations are funded creates perverse incentives, motivating hospitals to increase activity (by calculating acute care budgets based on activity) and primary care providers to evade it (by calculating funding by the number of patients registered).
With separate funding streams for healthcare, social care and public health, it is difficult to move money around the system to where it will have the most impact. This results in cases like that of Iris Sibley, who waited six months in a hospital bed for a suitable nursing home place. Aside from the adverse effects on patient health, cases like this indicate that NHS spending can be much better used. The National Audit Office estimated the annual cost of people remaining in hospital who no longer need acute care is around £820m, compared to the £180m it would cost to deliver this care in the community.