Technical review – February 2020

Getting it Right First Time (GIRFT) has launched a series of questionnaires in support of its work on paediatric critical care. This includes a questionnaire on finance, which seeks to gain an understanding of how the service is commissioned and funded; the information gathered in providers; and the data reported outside the organisation. GIRFT said it expected a senior member of the finance team would be best placed to provide the information, though it may also require input from contracting teams.

 

A new HFMA briefing looks at the accounting and valuation issues related to property, plant and equipment. The guide covers the initial measurement of purchased assets as well as when subsequent expenditure can be capitalised. It goes on to explore depreciation, including component depreciation, and looks at the revaluation model for measuring asset value in the NHS after initial recognition. A simple table summarises the valuation basis used depending on the asset type and reason it is being held. The guide goes on to cover the role of the auditor, impairment and disposal of property and equipment.

 

The existing reference costs grouper, as used in 2019 (relating to the financial year 2018/19), is being retained for use with the 2020 collection. The decision follows a review by NHS England, NHS Improvement and NHS Digital of the options for developing the grouper. It was decided that the existing grouper continues to meet the requirements of stakeholders and has the added benefit of being immediately accessible. A January costing newsletter also reminded providers that the deadline for the voluntary education and training cost collection had been extended to 17 February.

 

North Staffordshire Combined Healthcare NHS Trust implemented a patient-level information and costing system (PLICS) for its mental health services in 2014/15. Now a new briefing from the HFMA Healthcare Costing for Value Institute describes how the trust has worked hard to turn the large amounts of data generated by the system into information that is useful for clinical and operational services. The trust has developed an information dashboard in-house and clinical teams are starting to use this to identify opportunities for improvement. It has also started to map service user pathways and link these to patient outcomes. The briefing is available to all institute partner organisations.

 

NHS Improvement has published a guide on good governance for audit and assurance for providers and commissioners. The guide looks at best practice in appointing and managing external audit contracts, as well as external audit findings and reporting. It sets out expectations for good governance over audit and assurance and seeks to help NHS bodies understand their responsibilities.

 

The HFMA updated its efficiency map in December. The map – developed by the HFMA in partnership with NHS England and NHS Improvement – promotes best practice in identifying, delivering and monitoring cost improvement programmes and quality, innovation, productivity and prevention schemes. It links to a range of tools and guidance and is split into three sections: enablers for efficiency; service efficiency; and system efficiency. The map supports the delivery of efficiency in the 10 priority areas identified in the NHS long-term plan. A new case study explores how one sustainability and transformation partnership is embracing the use of costing data to drive its efficiency programme.

 

Commissioning for quality and innovation guidance has been published for 2020/21 by NHS England, covering both the clinical commissioning group and prescribed specialised services schemes. Selected indicators are aligned to four key areas: prevention of ill health; mental health; patient safety; and best practice pathways. Applicable indicators depend on the type of provider and payment rules continue to promote simplicity, with lower and upper adoption goals for each intervention chosen to ensure CQUIN funding is fully earnable.