Summary of progress against system reform aims

Audit Commission report June 2008 "Is the Treatment Working"

Back to chapter 7

Progress with implementation of reform policy

Aims

Have the aims been met yet?

FTs – 73 out of 171 acute and specialist trusts are FTs (a further 26 mental health trusts are FTs)

Stronger finances, greater efficiency

FTs started from a good financial position and have improved further. Income growth has been a significant contributor to the increasing surplus. Efficiency savings have also been made. FT application process has helped non-FTs improve financial management and financial stability.

 

Service improvement

FTs perform well, but they started from a better position than other trusts. Impact on any improvement is unclear.

 

Patient responsive services

Role of FT governors and membership is still developing.

 

Increased independence for providers

FT status allows autonomy and use of cash balances to deliver service improvements.

PbR– Implementation by acute and specialist trusts, where the policy has been largely mainstreamed. Little implementation beyond the acute sector. By April 2008, all acute trusts reached 100% PbR price and purchasing parity adjustment phased out for all PCTs.

Fairness and transparency of funding

There is now a clear link between activity, income and expenditure, removing the need for much local price negotiation.

 

Efficiency

Day cases have increased and lengths of stay have fallen, particularly for elective inpatients. Where changes have occurred, PbR seems to have reinforced rather than driven change.

 

Faster access to more appropriate, patient responsive services

Increase in overall activity, but particularly short-stay activity such as day cases and non-elective short-stay admissions. However, other policies will have also contributed to these changes. PbR has encouraged PCTs to focus on demand management.

 

Increased focus on quality

Not a primary driver in changes in quality to date, although, while emergency readmissions are increasing, there is no evidence that PbR has resulted in a negative impact on quality overall. Rewarding quality is likely to be a focus in the future.

PBC– Limited progress.

Better services closer to patients

PBC has only had a limited impact on service redesign to date.

 

Better use of resources to purchase services for patients

PBC has only had a limited impact on commissioning of services to date.

 

Reduced inequalities of outcome

There is potential to deliver this if PBC moves forward.

Plurality and patient choice– Limited introduction of ISTCs. Variable availability of patient choice.

Greater choice of provider for patients

Greater choice is available for most patients.

 

Stimulating competition

The fear of new providers has stimulated some change.

 

Improvement in quality

Information does not yet exist to enable patients to make a decision based on quality of outcome or to determine whether quality has improved as a result of patient choice.

 

Increasing capacity

ISTC programme has increased capacity but progress has been slower than expected.

 

Tackling health inequalities

No evidence that choice or ISTCs have reduced health inequalities.

Workforce contracts– Fully implemented.

Flexible workforce

Mixed progress has been made. The contracts have introduced some flexibility, but implementation has alienated some staff.

 

Delivering different services in new and better ways

Contracts have supported but not driven service redesign.

 

Increased productivity

The new hospital contracts resulted in an increase in costs without an associated increase in productivity.

 

Improvements in quality of care

Measures of quality did not improve significantly after introduction of new contracts, although it would be difficult to attribute any change to this.

 

Resolving recruitment and retention issues

Problems were largely solved in advance of new contract implementation.