Capital funding vital to boosting NHS productivity
Responding to the Health Foundation’s analysis suggesting lower productivity growth would add £13bn to the cost of the NHS, Matthew Taylor, chief executive of the NHS Confederation, said:
“This new analysis is yet more evidence of how important it is for the NHS to increase productivity. NHS leaders and their teams are committed to achieving this, and have successfully increased acute productivity in the first half of this year. Leaders know that in this difficult financial environment they have to get the most from existing capacity or they will not be able to manage the rising demand for care from an aging population, who often have multiple or complex conditions.
“But we know that the NHS is facing some very complex challenges which are impacting on performance and productivity, including being starved of capital investment. As Lord Darzi highlighted in his report, the lack of vital capital funding to repair crumbling buildings, replace out of date equipment and invest in the latest digital technologies has made it very hard to treat patients safely and efficiently.
“NHS leaders have told us that additional capital investment is crucial to improving performance and reducing long waiting lists. That is why the additional capital investment the government announced in October’s Budget was so warmly welcomed. But this still at least £3.3 billion short of the £6.4 billion a year additional capital investment needed to help boost NHS productivity growth to 2 per cent per year.
“Our recent report on capital efficiency sets out why NHS organisations now urgently need more options available to them, including private investment. We are committed to working with the government and private industry to find viable solutions that can inject vital capital into the health service.
“We hope the government will use the upcoming spending review to provide further long-term financial security to the health service. Putting the NHS on a sustainable footing will allow it to make headway towards the government’s key ambitions, of cutting waiting times and implementing its three big shifts.”
