Comment / Errors in nearly half of cost submissions

Almost half of audited reference costs submissions had materially inaccurate data, according to a Monitor report.

The regulator commissioned Capita to audit submissions from 75 trusts as part of the Monitor reference cost assurance process. It found 37 (49%) had materially inaccurate reference costs. Although this is an increase on last year’s 34%, the report said the rise was not statistically significant.

The providers’ costs were assessed in three settings: admitted care; non-admitted care (outpatients, A&E and imaging); and other services without mandatory tariffs (such as critical care). The proportion of providers assessed as good, adequate or poor in each setting was similar and 65% of the trusts with materially inaccurate reference costs were using poor costing information in all three care settings. Ten providers (15%) had accurate costing in each setting assessed.

The report said many of the trusts were not undertaking the detailed work needed to produce accurate costing data. Common issues included weak allocation and apportionment methodologies, poor implementation of costing systems and poor scrutiny by managers prior to submission of the costs. Audited providers have been asked to develop action plans.