News / Bright start to QIPP but ‘bold measures needed’

Outlining the final position for 2011/12, Mr Flory said that over the year the NHS in England reported QIPP (quality, innovation, productivity and prevention) savings of £5.8bn. Almost 50% of the savings were made in acute services (£2.8bn), dwarfing the next biggest contributions – prescribing (£700m) and mental health and learning disability services (£440m).

GP referrals and emergency admissions both fell by 1% on the previous year. Mr Flory said the modest reduction in activity was an indication the NHS was starting to redesign pathways in more appropriate settings.

Sickness absence fell to 4.35% in 2011 (4.47% in 2010). While progress was encouraging, Mr Flory said there was more to be done to reach the QIPP target of reducing sickness absence by a third. In the latest issue of The Quarter, he said: ‘It is important to build on this good progress by securing sustained delivery throughout 2012/13 and beyond.

‘As we have previously noted, the demands ?of an ageing population and increased costs owing to developments in drugs and medical technologies present challenging financial conditions in a constrained economic climate. All parts of the NHS will need to?take bold, long-term measures to rise to this and deliver sustainable improvement in 2012/13.’

Mr Flory also reported on the NHS year-end financial position. In line with Healthcare Finance’s own summary in June, strategic health authorities and primary care trusts reported an aggregate year-end surplus of £1.58bn (1.6% of total revenue). NHS trusts (excluding FTs) reported an aggregate surplus of £45m. Only trusts in NHS London and Yorkshire and Humber ended the year in net overall deficit (£96m and £5m respectively).

Three PCTs, all in London, reported deficits totalling £48m – one less PCT than at Q3 as Croydon Primary Care Trust finished the year with a small surplus. However, 10 NHS trusts reported year-end deficits, rather than the eight forecasting deficits at Q3.