Meeting the efficiency challenge

Productivity, procurement and efficiency in the NHS are being scrutinised like never before, in the wake of a report by Lord Carter of Coles. Lord Carter, who was appointed as chair to the NHS Procurement and Efficiency Board, by the Secretary of State for Health, has worked with 22 leading hospitals to see how the NHS could save money by doing things more efficiently and spreading best practice. His report claims that the NHS could save up to £5 billion every year by 2020 – by making better use of staff, using medicines more effectively and getting better value from the huge number of products it buys. 

Last year, NHS England’s Five Year Forward View set out a need for the NHS to deliver £22bn of annual savings over a five year period. Lord Carter’s Review1 stated that all areas of expenditure will require close scrutiny if the efficiency challenge is to be met. The Review found that most NHS hospitals can demonstrate good practice in some areas, but all have room for improvement.

He acknowledged that “There is no silver bullet for delivering the efficiencies outlined byFive Year Forward View. Instead, it requires a relentless focus on a multitude of efficiency opportunities, which, when combined, have the potential to make a significant contribution to the £22bn.”