HC Deb 01 May 1995 vol 259 cc6-7W
Mrs. Beckett

To ask the Secretary of State for Health if she will list the efficiency rating of the English hospital and community service and those of each EEC country in each available year between 1978–79 and 1992–93. [19797]

Mr. Malone

[holding answer 21 April 1995]: Improvements in hospital and community health services efficiency are estimated by comparing the rate of increase in activity with the increase in expenditure. Between 1978–79 and 1992–93, HCHS cost weighted activity in England increased by 39.8 per cent. and HCHC expenditure, adjusted for movements in HCHS pay and prices, by 15.3 per cent. This implies an increase in efficiency of some 21 per cent. over the period. Data on the annual changes in activity and expenditure are in the table. Estimates from these data of efficiency gains for individual years over this period are not regarded as reliable.

Directly comparable data are not available for health services in other European Union countries. However such evidence as is available indicates that unit costs have generally risen over the last decade. Information on these health services is available in "OECD Health Systems",

HCHS cost weighted activity index
HCHS cost weighted activity index percentage increase over previous year 1978–79 = 100 Expenditure adjusted for changes in input unit cost percentage increase over previous year 1978–79 = 100
1978–79 100.0 — 100.0 —
1979–80 100.2 0.2 100.0 0.0
1980–81 105.9 5.8 100.8 0.8
1981–82 107.8 1.8 103.1 2.3
1982–83 107.2 -0.5 103.2 0.1
1983–84 113.2 5.5 104.0 0.8
1984–85 116.5 3.0 104.1 0.1
1985–86 119.7 2.7 104.3 0.2
1986–87 121.4 1.5 104.6 0.3
1987–88 123.4 1.6 105.4 0.8
1988–89 124.5 0.9 106.2 0.7
1989–90 127.2 2.2 108.0 1.7
1990–91 128.9 1.3 109.0 1.0
1991–92 135.6 5.2 111.9 2.6
1992–93 139.8 3.1 115.3 3.1

Notes:

1. The cost weighted activity index provides a broad measure of the overall growth in HCHS activity, in which the contribution of the individual components are weighted by their costs.

2. Estimates of efficiency derived from these figures do not take account of the changing cost of a unit of output over time—for example due to demographic changes in case mix and the costs and benefits of medical advance. It is not possible to measure the effect of the last two components. However, demographic change has meant that the average cost per person treated has increased, particularly because of the growing number of very elderly people, who tend to require more expensive care.