§ Mr. McAvoyTo ask the Secretary of State for Health what is his estimate of the proportion of the budget spent on administration for(a) health authorities, (b) NHS trusts, (c) directly managed units, (d) fundholding general practitioner practices, (e) non-fundholding general practitioner practices and (f) the NHS as a whole. [30735]
§ Mr. MaloneThe latest available information is for 1994–95 when spending on administration by regional health authorities, district health authorities, family health services authorities and special health authorities accounted for 3.5 per cent. of the national health service total gross spending. This figure includes the total revenue expenditure on pay and accommodation costs of staff at headquarter level in RHAs, DHAs and SHAs as identified in their annual accounts and the administration expenditure identified in the FHSAs' accounts.
The costs of administrative support in trusts are not separately identifiable from the 1994–95 accounts, as these were regarded as part of operational expenditure.
The costs of administrative support in directly managed units are included in the costs of the parent health authority.
All general practitioners are independent contractors supported through the general medical services system of payments and allowances. There is no facility within this system to separate out administrative costs. Fundholding practices receive a management allowance to meet the additional costs incurred in managing a fund. In 1994–95 these allowances accounted for 0.2 per cent. of NHS total gross spending.
Across the health service as a whole, 4.4 per cent. of total gross spending was committed to administration. This total includes the elements identified above as well as the gross running costs of the NHS executive and NHS-related functions of the Department of Health and the costs of the Prescription Pricing Authority and the Dental Practice Board.