John Appleby on improving NHS productivity

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The King's Fund

John Appleby, Chief Economist at The King's Fund, looks at why NHS productivity needs to be improved and by how much.

Health & Medicine

Why improve productivity and by how much? Prof John Appleby Chief Economist The King’s Fund January 2011

Overview ,[object Object],[object Object],[object Object]

1: Why improve productivity? ,[object Object],[object Object],[object Object],[object Object],[object Object]

2: The productivity challenge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

2010 ~20% increase in outputs relative to inputs..

Clinical governance £28 billion ‘ Value’ of the shortfall if no real rise for next 4 years and no productivity improvement £133 billion NHS funding needed in 2014/15 to meet Wanless NHS ‘Solid Progress vision’ £16.1 bn £2.2 bn £2.5 bn £4.8 bn £1.9 bn £0.5 bn Improve quality Demand drivers Capital Real pay and prices Things Wanless recommended the NHS do…improve quality, pay staff more, reduce waiting, better accommodation…

£28 billion ..around 6% productivity gain each year for three years.. £19 billion ..around 4.3% productivity gain each year for three years ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Policy choices can reduce the productivity challenge…but remains a challenge ,[object Object],[object Object],[object Object],[object Object],[object Object]

3: What drives changes in productivity? UK NHS: Per cent annual change in inputs and outputs (ONS) Good news! Spend more, get more…

Good news! Productivity has increased (in some years)..

Productivity improves as the money tap tightened… UK NHS: Per cent annual change in inputs vs productivity: 1997-2010 (ONS) UK NHS: Per cent annual change in outputs vs productivity: 1997-2010 (ONS) Aiming for productivity increases each year for 4 years in this range

Finally… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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