The NHS provider sector made significant progress in tackling agency spending in 2016/17 but now needs to ‘re-double its efforts’ to reduce spending to a sustainable level, NHS Improvement has said.
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The Department of Health group underspent on its revenue budget in 2016/17 by more than £500m, according to its annual report and accounts.
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The NHS needs to move to a framework of earned autonomy that works at the system level as well as incentivising individual organisations, NHS Improvement director of resources Bob Alexander told the HFMA Convergence conference in London.
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The NHS is on the right track in moving to service delivery based around accountable care models, according to one of the world's most widely recognised integrated health systems.
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Accountable care organisations (ACOs) and accountable care systems (ACSs) offer the best opportunity for the NHS to meet its current challenges, King's Fund chief executive Chris Ham told the HFMA Convergence conference in London.
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Moving the NHS to a collection of accountable care systems will take time and need persistence, according to a leading international expert in healthcare systems.
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The NHS is moving slowly towards the end of the purchaser-provider split in England, according to Ben Collins, project director at the King's Fund.
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Two leading lights from the NHS finance community and HFMA honorary fellows have been recognised in the Queen's Birthday Honours list.
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Though providers reduced spending on agency staff by £700m in 2016/17, they fell short of their planned reduction and will be asked to focus on reducing medical locum spending in 2017/18.
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NHS providers in England had an overall deficit of £791m in 2016/17 and are planning for a 2017/18 aggregate deficit of just under £500m, according to NHS Improvement chief executive Jim Mackey.
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