HFMA 2019: NHS needs to exert influence on local economy

04 December 2019 Steve Brown

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Michael Wood (pictured), head of health economic partnerships at the NHS Confederation told a Learning Lab session at the HFMA annual conference in London that the health and social care sector was a ‘major economic and social actor’. But while awareness of this was increasing, much more could be done.Michael Wood - Landscape

Local economic growth, productivity and prosperity were key health issues, yet all too frequently health bodies were not using their influence in these areas. Local economic partnerships (LEPs)– 38 across England – were the key organisations in economic growth, he said, channelling most of the local growth funding to their areas. Yet often the NHS has no seat at the table.

‘These are the bodies coming up with plans for spatial planning, skills, growth infrastructure, innovation, business support, transport, housing and tourism,’ he said.

‘They led a review of colleges a few years ago to make sure they were financially viable, but also to make sure the courses they put on were linked to the local economy. So, I can guarantee that wherever you are in the country, there are small to medium sized enterprises who employ 20 people who have more influence than a hospital if you are not influencing an LEP about why our skills matter.’

The local hospital would also typically have the biggest procurement budget of any organisation locally, along with the biggest staffing establishment and biggest estate. ‘So are you going to sit there and pick up the pieces of a broken economy or at board level are you going to take decisions on where you buy your stuff from?’ Mr Wood asked. ‘How are you using your procurement locally to develop your local economy? This should be an expectation, not a concept that is vaguely familiar.’