Magazine article Public Finance

NHS Management Costs to Be Slashed by £850M by 2013

Magazine article Public Finance

NHS Management Costs to Be Slashed by £850M by 2013

Article excerpt

The government has continued its crackdown on NHS management costs with the launch ofa revised operating framework for the current financial year.

Strategic health authorities will be expected to slash management costs by around £850m from the current spend of more than £1.85bn to just over £lbn by April 2014.

SHAs and primary care trusts will determine how this is managed, with major reductions expected in the next two financial years.

They will be expected to save at least £222m in 2010/11 and a further £350m in 2011/2012.

A freeze on new consultancy, marketing and IT spending is to be managed by a new efficiency and reform group.

Overall, SHAs and PCTs have been told to end this financial year with an aggregate surplus of £lbn.

Health Secretary Andrew Lansley said; 'Management costs in primary care trusts and strategic health authorities have increased by over f^bn since 2002/03, with over £220m of theìncrease taking place during 2009/10.'

He added that it was the government's intention to get back to 2008/09 management costs by the end of this financial year. 'Then in subsequent years, we will go beyond that, with a further £350m reduction in 2011/12. …

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