Briefing / Financial sustainability: understanding the terms used

2023/24 is expected to be a difficult financial year for NHS bodies. The planning round in late 2022 and early 2023 was challenging and achieving those plans is expected to be difficult. 

There are many ways that the response to this challenge is discussed and some phrases, such as financial sustainability and productivity, are being used more and more. However, our discussions with stakeholders point to the fact that there is inconsistency in the language used, particularly in relation to efficiency, productivity and value. This can be a problem when discussions include clinical colleagues, wider organisations and systems.

This briefing looks at why financial sustainability is so important, what the options are for individual organisations and systems, how it is achieved. Throughout, we have tried to demystify some of the many terms that are used when discussing financial sustainability.