§ Mr. LilleyTo ask the Secretary of State for Health what are the net savings made from replacing the NHS internal market by the arrangements introduced in April 1999. [120330]
§ Mr. DenhamSavings from replacing the National Health Service internal market have played a major part in ensuring that the Government are on course to achieve their commitment to save £1 billion from the cost of bureaucracy in the NHS. Savings have accrued through a series of measures including
abolishing the internal market and ending competition;introducing new primary care groups in place of general practitioner fundholding;replacing yearly contracts within the NHS with long-term agreements;abolishing the wasteful "extra-contractual referral" system pooling services and functions;merging NHS trusts to save at least £500,000 in each case.These and other savings related to abolition of the NHS internal market and other cost reducing measures have contributed to an overall saving in management costs of £0.5 billion up to the end of March 2000.
§ Mr. LilleyTo ask the Secretary of State for Health what steps he has taken to(a) monitor and (b) measure the net savings arising from replacement of the NHS internal market. [120331]
§ Mr. DenhamThe cost of managing the National Health Service has been monitored in a consistent way since 1995–96 and change in the quantum of management costs is used as the basic measure of savings accrued. No additional steps have been taken to monitor and measure the net savings arising specifically from replacement of the NHS internal market.
Monitoring of NHS management costs is carried out quarterly and annually for health authorities and primary care groups. Monitoring of management costs in NHS trusts is carried out annually.
Savings in total management costs are calculated annually from the information supplied by individual HAs and NHS trusts. Information to identify the level of savings accrued from mergers of NHS trusts is collected separately.