OVERVIEW

The NHS is facing increasing demands: an ageing population, advances in science and technology, and rising public expectations. It must meet these demands from within its current real terms funding, while at the same time improving quality. The QIPP challenge – requiring the NHS to make up to £20bn of efficiency savings by 2014/15 to invest in meeting demand and improving quality – means that all parts of the health service will need to take bold, long-term measures to secure sustainable change. It is not an option to 'continue as before'. The NHS needs to radically transform the ways it delivers services.

The financial pressures to make 4% efficiency gains for four years running are system wide. The health service will have less money to spend at a time when healthcare costs continue to spiral upwards. The NHS has never achieved a 4% saving in its entire history, never mind consecutively year on year, so how do health leaders practically set about making our healthcare more efficient, more effective and more productive?

Although the annual health budget has continued to rise, the Office for National Statistics has estimated that productivity fell by an average of 0.3% per year between 1995 and 2008. The 2009 McKinsey report concluded that, if all hospitals and GP practices were as efficient and effective as the best, the NHS could save up to 22% of its budget a year. Herein is the key to the QIPP challenge: productivity needs to rise. Current models of care appear outdated at a time when society and technologies are changing the way patients interact with service providers. The NHS must change and move with the times, and this means considering new ways of working, using high-impact innovations such as digital technologies. 90% of all interactions in healthcare are currently face-to-face; every percentage reduction in face-to-face contact could save up to £200m, at the same time as improving patient choice and satisfaction levels and enhancing quality of care. Close engagement with research institutions can accelerate the adoption and spread of innovative products and practices.

There are concerns over the prospects for NHS finances in the future as the spending cuts bite. Areas where productivity gains could be made include cutting lengths of stay, doing more day care surgery and improving procurement. Savings could also be made in back office functions such as HR and finance. Efficiency targets so far have mostly been met by cutting costs: rationalising estates and assets and reducing management and administration. However, this will not address the long-term challenges, which require radical change. There is need to integrate hospital, community and social care in order to improve patient experience and find efficiency gains. But integration is still the exception rather than the rule. Leaders must look outside their own organisation and take a system-wide perspective. Collaboration and networking are key; talk around integration often focuses on money and systems, but success ultimately depends on people and culture.

At NHS Productivity: transforming healthcare you will hear from expert speakers who will discuss the efficiency and reform agendas facing the NHS and how best to manage them. You will learn about smarter ways to do more with less, practical solutions to make efficiency gains and inspiration on how to deliver a more productive and effective service. This event will look at models for change in the NHS, offering real examples from those who have successfully led service redesign in the health service.