Foundation trusts regulator Monitor has warned hospitals that they will need to make up to 75 per cent greater efficiency savings than originally planned due to higher inflation and tougher financial penalties incurred for incidents such as emergency re-admissions following surgery.
NHS chief executive Sir David Nicholson had previously told hospitals that they needed to find 4 per cent savings each year for the next five years in order to maintain services, taking into account the rising costs of medical treatments, increased demand and the smaller rises in NHS budget.
Monitor has now told foundation trust applicants that they must find savings in the region of 6-7 per cent in order to achieve foundation trust status by 2014. The Department of Health said Monitor’s assessments are challenging but “wants all hospitals to be able to meet Monitor’s standards and show that they can provide sustainable, high quality and efficient services for their patients.”
In order to achieve these savings, clinicians and managers need to have a solution in place that enables them to track and remove inefficiencies and areas of waste.
Ardentia’s Activity Flow Analytics (AFA) allows finance managers to access information on data such as outpatient attendance, trends, patient location and treatment requirements. With this information readily available, Trusts are in a better position to find ways of saving money efficiently; ensuring resources are being used effectively whilst delivering high standards of care.
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