§ Mr. BurnsTo ask the Secretary of State for Health what measures his Department is taking to reduce the levels of(a) financial waste, (b) fraud and (c) inefficiency in the NHS; and what progress has been made over the last 12 months. [127492]
§ Mr. HuttonThe Department of Health monitors and manages the performance of the national health service in the delivery of the key targets set out in the NHS Plan. In addition, the NHS is subject to external independent audit by the Audit Commission and the National Audit Office. They publish a number of studies each year on the value for money of aspects of the NHS. The Department of Health considers each of these reports, and implements their recommendations where appropriate.
The Counter Fraud Service, now Counter Fraud and Security Management Service (CFSMS), was formed in September 1998, with a remit to tackle fraud and corruption within the NHS. It established a risk measurement programme to carry out an exhaustive examination of valid samples of cases in each area of NHS spending and to produce statistically robust estimates of fraud accurate to plus or minus 1 per cent. of losses. These exercises are among the first of such exercises to be undertaken anywhere in the public or private sectors.
The first measurement exercise concentrated on patient fraud. To deter and prevent patient evasion of NHS charges and to increase the anti-fraud culture, point of dispensing and point of treatment checks were introduced. These checks require patients to provide proof of exemption to charges. The measurement exercises have already demonstrated a reduction in fraudulently claimed exemption to these charges from approximately £170 million to £109.17 million per year, a reduction of 36 per cent. since 1998.
Over 1,400 cases of potential fraud have been detected and investigated. This has resulted in 160 successful criminal prosecutions with 98 per cent. success rate, 215 civil and disciplinary sanctions have been applied and over £14 million recovered. Additionally, over £31 million of fraud has been identified and stopped.
As action takes place to counter fraud in the NHS the measurement process will be repeated to demonstrate what progress has been made to reduce fraud to an absolute minimum.
In addition, governance arrangements have been improved to ensure the necessary standards of accountability, probity and openness through the introduction in 1999 of the Controls Assurance Standards.