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Notes from NHS Networking Lunch for Deputy Directors from Acute & Mental Health Trusts - 8th April 2010

The profile of the NHS in 2011 will cut a vastly different landscape to previous years, where over the last decade real term NHS growth has been over 6%. It is commonly acknowledged that going into a new Government in May, there will be twin pressures of health service reform and restriction of public funds which have not been faced previously by many NHS Managers. Between an increase in activity, demand for services, and mooted corporate savings of up to 20%, efficiency and productivity are at a premium.

The managers initiating and developing change in many cases will be from within the corporate finance function, and Morgan Law has assembled a top group of Acute Trust Deputy Directors of Finance to address the questions of the day.

QIPP (Quality, Innovation, Productivity and Prevention) is central to the future of the NHS, it must be enshrined in the DNA of the NHS, says David Price of the SHA, which leads to a lively forum of debate around productivity and sustainability.

Andy Ray (Basildon and Thurrock) points out that 5% efficiency savings year on year will become increasingly hard to find, Salim Siddique (Lewisham NHS Trust) agrees - Service Redesign is the key. Consensus remains that shaving cost savings year by year will not lead to sustainable efficiency and that as Simon Blazer (UCLH) points out, clinical engagement is crucial in driving through systemic change.

Key theme’s coming out of discussion around QIPP are that, as Neil Callow says, finance managers shouldn’t see CIP’s as threats to their budgets, from a Deputy Directors point of view it should be managing and motivating FM’s to drive efficiencies through, whilst still developing service within Directorates.

Roy Clarke (Mid Essex NHS Trust) wants to develop service and business within his current Trust. He is keen to compete with the private sector in taking on new business, expanding the Trust’s services. Something which strikes a chord amongst the table is losing out to private sector companies in bids and tenders for more services. Is the public sector at a distinct disadvantage at competing with the private sector for new business? And, when it is mooted that Trusts can ‘grow their way out of trouble’ is this wise for development of the public sector? The need for business development professionals and experienced and commercially minded bid writers could well be useful additions to growing Trusts.

At this time of year, the thorny issue of signing off contracts was never far from the agenda. The future of the contracting process was brought into light from a Trust perspective, where Neil Callow points out that the reality of the constant over-performance of the Acute Sector must be reflected more accurately. To avoid costly and time consuming arbitration, Helen Jameson (Kingston NHS Trust) suggests that GP’s and clinicians should work together to address pathways, and Roy Clarke advises that the first meeting with commissioners should be around strategy, development and be less confrontational. PCT’s and Trusts as bedfellows, rather than opposing sides of the same coin.

Themes emerging from discussion are growing partnership with frontline services, and an empowering of staff to think about impacts upon service, and business partner their clinicians to work together to achieve targets.

Sotiris Kyriacu (NHS London) initiates discussion about the change of Government impacting the NHS, but it is acknowledged that across the political spectrum, cuts will be made and that the path to growth will be as much down to internal teams and their management than it will be external pressures. Cultural changes are needed, which will be driven in many instances by DDoF’s, and as a professional group it is acknowledged that they must give license to their managers to be strategic and make transformational change for themselves.

There is a shared view that to adapt to the pressures of the new decade, outdated measures must be challenged and that entrepreneurial spirit should be embraced as an enabler for change within finance teams.

All present work within the public sector and are wholly committed to change within the NHS to deliver best quality of patient care to all. Election and party politics aside, cuts are inevitable but these must not affect front line services – indeed consensus and optimism is that redesign and forward thinking CAN lead to both improvement in care, and fiscal prudence.

For more inforamtion about this networking event and others that Morgan Law are organising to support your network within your sector, please contact Lara Knights on 0207 747 4397.