§ Baroness Noakesasked Her Majesty's Government:
What is the rationale for excluding non-staff overhead costs from the definition of National Health Service management costs. [HL3034]
§ Baroness AndrewsThe most rigorous method for measuring the cost of management would be to start with the definition of the activities that constitute management. The amount of time each member of staff spent on those activities would then be calculated and costed but even if a list of activities could be agreed upon, such a method would be prone to subjectivity and inconsistent application. It would also be extremely time-consuming and bureaucratic to undertake. The method adopted is based on management posts.
Not all the running costs of primary care trusts and National Health Service trusts cover activities that are classed as management, unlike strategic health authorities and former health authorities, whose management cost definition includes elements for both staff and non-staff costs as their running costs do cover activities that are classed as management.