1. Portfolio/Number/Name:H/C7 NHS Efficiency Savings |
2. Programme/Activity: A recurring 1% Efficiency Saving from NHSScotland. NHS Chief Executive Officers have signed up to deliver 1% recurring efficiency savings. Information has been submitted from each NHS Board summarising the schemes and the level of savings expected from each one. A wide range of efficiency schemes have been identified across the NHS Boards, including contracting, commissioning, estates and facilities, service redesign, workforce arrangements, transport services, and local initiatives on prescribing/drugs and support services (over and above national ones). Plans covering to the end of 2007-08 have been received. |
3. Efficiency | 3.1 Current target; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 88.0 | 134.0 | 208.0 |
Time | 0 | 0 | 0 |
3.2 Efficiencies delivered; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 71.0 | - | - |
Time | 0 | - | - |
4. Accountable Officer for delivery | Dr Kevin Woods |
5. Project Manager | Mr Alex Smith |
6. EGDD Portfolio Manager | Rowena Simpson |
7. Description of efficiency and actions to be taken | 7.1 What is the efficiency improvement? How will the efficiencies be made? How the 1% efficiency saving is being made by each Board is very much a local decision. Information on specific schemes has been received by the Health Department for each individual body. This information enables the monitoring of progress against the targets set for each NHS Board. Savings are and will be made by improving productivity and use of existing resources through reductions in cycle times, process times and efficiencies, and better use of existing capacity. Specific examples include service redesign, appropriate staffing considerations and review of catering arrangements. A broad and diverse range of projects have been considered as part of this exercise. |
7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement? NHSScotland Health Board Chief Executives and Directors of Finance have given their full commitment to the process and the delivery of the savings. The achievement of savings will be monitored using the financial monitoring templates already in use. NHS Boards have built agreed savings into their 5 year plans. |
8. Associated costs | 8.1 Are there any development or redundancy costs associated with the delivery of this efficiency? It is unlikely that there will be offsetting recurring expenditure to underpin any of the savings generated. |
9. Measurement | 9.1 What are the inputs that will be measured? The level of expenditure spent on a particular service will be measured, taking one year with another. Budget savings will fall against Clinical/Non-Clinical Service Costs. The expected efficiency benefits will be measured purely on a financial basis. These savings will be detailed in financial returns made throughout the monitoring period. |
9.2 What are the outputs that will be measured? The level of activity will be measured, taking one year with another. |
9.3 What is the baseline for inputs and outputs? The level of expenditure and the level of activity in 2004/05 are the baselines |
10. Quality cross-check | 10.1 What quality indicators are being used to ensure that quality of service is maintained or improved? These savings will not impact on the quality of service provision and this will be assured through established performance assessment arrangements. |
11. Monitoring | 11.1 What are the arrangements for monitoring the delivery of efficiencies? This process has been aligned with current reporting/monitoring information, ie monthly basis commencing month 3 of any given fiscal year. Lead responsibility for monitoring is Directors of Finance in conjunction with Chief Executive Officers. In practise this is the completion of a monitoring schedule by individual NHSScotland Health Boards/Special Health Boards. |
12. Reporting | 12.1 What are the arrangements for reporting the delivery of efficiencies? Once received, the monitoring information is collated and forwarded to the Health Department Management Board. Financial information is used to measure progress. Detailed information has been available since 31 March 2005 and will continue to be assessed and updated routinely. Full Ministerial involvement will include these savings as part of the annual review process of Performance Management. Validation will be part of the normal financial monitoring process (including meetings with key NHSScotland staff) and ultimately feeding into an audited set of annual accounts. Ministers will ultimately hold NHSScotland Health Boards and Special Health Boards to account for the delivery of these savings. |
13. Dependencies | 13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved. These savings are expected to be locally based initiatives and not dependant on any legislative or structural influences. |
14. Use of efficiencies | 14.1 How are the efficiencies released from improvement activity being used to improve front-line services? This 1% efficiency saving was assumed as part of the allocation made by the SEHD to NHS Boards and consequently was built into the budget. However there has been no diminution in the overall funding to Boards because the gross annual uplift is considerably more than 1% There is no direct link between the amount saved and a specific new initiative; the resources released are to be reinvested in NHS priorities . The objective is to achieve more or better services for the same money. The process encourages a culture of continuous improvement and re-examination of services and service delivery. |