2017 health sector forecast
As we head into 2017, the health sector continues to be confronted with an ever challenging environment, driven by the need to leverage sustainable, transition based efficiencies across a growing range of stakeholders. With all eyes on the NHS budget, we speak to Gleeds head of healthcare, Roger Pulham, to hear more about the important issues facing the sector.
How is the NHS looking to meet efficiency targets set by the Government?
One of the ways that commissioners, providers and regulators are actively addressing set efficiency targets is through facilitating 44 maturing Sustainability Transformation Plans (STP’s) across England. Off the back of the STP’s adoption, each footprint locality will receive additional funding geared to meeting transformation plan needs.
What is the significance of STP’s?
The NHS and local councils have come together in 44 areas across England to develop proposals geared at improving health and care in the primary sector. These proposals are based on key demographics, and reflect the needs of the local population, as opposed to a one size fits all solution, in order to create a more cost effective and efficient service for local communities. Metropolitan localities, such as London, Manchester and Birmingham, continue to test boundaries with different solutions to deliver their targets.
So we understand how the primary sector is adapting, but what about our hospitals?
The Government has set a target to save £5 billion p/a within the health sector, and this falls to the 140 or so acute service providers to deliver by 2020.
The requirement for Acute Trusts to contain redundant and substantially underutilised space within 2.5% of its gross operational floor area by 2020, is probably the most challenging of all of the measures featuring in the Carter Report. However, it is also one of the most value generating measures prescribed. Many NHS Trusts will need to revisit their estate strategies and capital plans if they are to meet this requirement, but there are a raft of transitional methods that can be implemented to generate revenue whilst a more permanent solution is found.