§ Mr. MorganTo ask the Secretary of State for Health what are the estimated annual savings in NHS782W management costs arising from the Health Authorities Bill arising from (a) the abolition of the regional health authorities, (b) the elimination of overlapping functions between regional health authorities and the Department of Health, (c) reductions in the number of health authorities and (d) merger between the family health service authorities and the district health authorities.
§ Mr. MaloneWe estimate that, when the Health Authorities Bill is fully implemented, it will lead to annual savings in national health service management costs of approaching £150 million. Of this, over £100 million per year will arise from the abolition of regional health authorities and the remainder from the replacement of family health services authorities and district health authorities with unified health authorities, including savings from the reduction in the number of DHAs in preparation for the creation of HAs.
Savings from the elimination of overlapping functions between RHAs and the NHS executive have not been separately identified but, as well as forming part of the savings at regional level, will contribute to the savings of some £50 million to be made in the running costs of the Department of Health by 1997–98.
All these savings will be put into patient care.