News / HFMA 2012 QIPP, not cut, says Flory

NHS deputy chief executive David Flory has urged the NHS to meet the economic challenge using QIPP (quality, innovation, productivity and prevention) methods rather than cutting services.

Speaking at the HFMA annual conference in London, Mr Flory warned that simply cutting services had a knock-on effect on the quality of care delivered to patients. The Francis report on the failings at Mid Staffordshire NHS Foundation Trust, due in the new year, would underline this message, he added.

‘The Francis report will bring back in stark terms the consequences when things go wrong and what happens when you cut rather than when you QIPP. As we think about QIPP going forward we must check ourselves and each other on the question of whether it’s QIPP not cut.’

He welcomed the announcement in the chancellor’s autumn statement that the health budget would continue to be protected into 2015/16 – the first year of the next spending review round – but warned saving would still be needed. ‘Between now and 2016 for trusts that means 12% efficiencies; up to 5% is going to be “cash out”. If all else is the same, you need to do whatever you do now 12% more efficiently and with 5% less cash.’

He added this meant the acute sector would be significantly smaller, though this did not mean wholesale closure of services and units. Care would be provided closer to home and away from acute hospitals.

Mr Flory praised the finance profession, adding: ‘We need to focus absolutely on the patient and the taxpayer – that’s an “and” not an “or”. On the subject of cuts or QIPP if you remain focused on what’s best for the patient you are likely to be on the right side of the road.’

In his final HFMA conference before he takes up the full-time post of NHS Trust Development Authority chief executive, Mr Flory signed off with a rallying cry to the finance function. ‘You will succeed. Be optimistic, be confident, be bold and make sure the success we have prepared for and built over the last few years continues in the future.’