A report said that 26 per cent of the increase in National Health Service income between 2000 and 2003 had gone towards paying private finance charges for new hospitals.
Source: Pam Edwards, Jean Shaoul, Anne Stafford and Lorna Arblaster, Evaluating the Operation of PFI in Roads and Hospitals, Association of Chartered Certified Accountants (0141 582 2000)
Links: Report (pdf) | Guardian report
Date: 2004-Nov
A new book challenged the belief that health expenditures would rise in direct proportion to the average age of populations. An analysis of English data showed that proximity to death was a much stronger predictor of future hospital expenditure than age alone. Additional years of life were lived in health, not disability.
Source: Meena Seshamani, The Impact of Ageing on Health Care Expenditure: Impending crisis or misguided concern?, Office of Health Economics (020 7930 9203)
Links: Briefing (pdf)
Date: 2004-Aug
A new book challenged the assumptions underlying the Wanless Report (published in 2002) on future healthcare spending - in particular, that the government could manage demand for healthcare by encouraging the public to take an active role in preventing ill-health; that healthier lifestyles would lead to an overall reduction in the demand for NHS services; that productivity in the NHS could improve by 2.5 per cent per annum; and that population ageing would primarily affect healthcare spending at the end of life.
Source: John Appleby, Nancy Devlin and Diane Dawson (eds.), How Much Should We Spend on the NHS?: Issues and challenges arising from the Wanless Review of future healthcare spending, Office of Health Economics (020 7930 9203)
Links: Summary (pdf) | Wanless report
Date: 2004-Jul
The Spending Review 2004 promised that spending on the National Health Service in England would rise by 7.2 per cent in real terms each year until 2007-08 - equivalent to a 23 billion increase.
Source: Stability, Security and Opportunity for All: Investing for Britain s long-term future - 2004 Spending Review/New public spending plans 2005-2008, Cm 6237, HM Treasury, TSO (0870 600 5522)
Links: Spending Review report (pdf links) | King's Fund press release | NHS Confederation press release | Guardian report
Date: 2004-Jul
An audit report said that payment by results, a new funding system for National Health Service trusts, offered significant opportunities for improved efficiency and cost-effectiveness. But the new regime also carried substantial risks which, if not well managed, could lead to financial instability within NHS bodies.
Source: Introducing Payment by Results: Getting the balance right for the NHS and taxpayers, Audit Commission (0800 502030)
Links: Report | Audit Commission press release
Date: 2004-Jul
An audit report said that National Health Service bodies had to improve their financial management arrangements if the service were to realise the benefits of extra funding and meet the challenge of delivering better services.
Source: Achieving First-class Financial Management in the NHS, Audit Commission (0800 502030)
Links: Report | Audit Commission press release | Guardian report
Date: 2004-Apr
An audit report said that the National Health Service in England as a whole reported an underspend of 96 million in 2002-03, within the context of healthcare commissioned of 46.7 billion. However, 8 per cent of NHS organisations suffered significant deficits, the biggest of which amounted to nearly 45 million: these, if not matched by surpluses elsewhere, might put at risk the achievement of overall financial balance.
Source: NHS (England) Summarised Accounts 2002-2003, HC 505 (Session 2003-04), National Audit Office (020 7798 7000)
Links: England report (pdf) | NAO press release | Guardian report
Date: 2004-Apr
A report on the NHS in Wales said that in 2002-03 it was 37 million in deficit, compared to a 16 million deficit for the previous year.
Source: The Finances of NHS Wales 2004, National Audit Office Wales, TSO (029 2039 5548)
Links: Report (pdf)
Date: 2004-Apr
The Welsh Assembly Government responded to a report which had raised concerns about the financial state of the National Health Service in Wales. It said it had taken action to eradicate financial deficits by March 2006.
Source: The Finance of NHS Wales 2003: Assembly Government response to the report of the Audit Committee, Welsh Assembly Government (029 2082 5111)
Links: Response (Word file)
Date: 2004-Jan
