NHS budget £400 million during 1950s:
Efficiency savings, cuts in fees to contractors (GPS, pharmacists and dentists)
and implemented health service charges (dental, eye and medicines)
NHS budget £103.2 billion during 2010/11:
Efficiency savings, cuts in fees to contractors and competition
NHS Difficulties
Services not coordinated
Hospitals and doctors more prevalent in nicer parts of the country
Increase in expenditure greater than inflation: new medicines, new technologies,
more professionals, living longer and greater expectations
Impact of NHS on Pharmacy
Increase in prescriptions: 1948-13.6 millions and 2009/10 813.3 million
Massive reduction in OTC sales
Greater reliance on NHS funding
Disappearing pharmacists-moving from counter to dispensary
The Problem
GPS and hospitals had no real responsibility for their expenditure
No incentive to reduce expenditure
Internal Market 1991
Give GPs budget for routine hospital admissions and medicines
Incentive being proportion of savings used in practical development
Result hospitals compared savings to other hospitals and GPs setting service and
efficiency quality contracts with hospitals
Impact: increased admissions cost that counterbalance efficiency savings
Structure of the New NHS
Patients and public shouldn’t notice any changes
Organisational change: clinicians in charge of budget not managers, clinical
commissioning, GPs purchase services from NHS hospitals and private providers
and money saved is spent on practices
Increased Competition and Quality?
GPs and hospital have quality targets
National service framework- minimum standard of care
National Institute for Health and Care Excellence (NICE): review medicines and
other interventions, provide evidence based guidance, identifies which
medicines can be prescribed on the NHS and if NICE recommend a treatment the
patient cannot be denied it
New NHS Bodies
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