BMJ  2006;332 (15 April), doi:10.1136/bmj.332.7546.0-b

Improvements in services haven't matched increased spending in NHS

Service improvements in the NHS in the past seven years have not kept pace with the dramatic increase in spending. Although annual revenue increases of 7% since 2000 have improved services, overall NHS productivity seems to have declined, say Maynard and Street (p 906), and now the service faces large deficits. The authors blame lax spending controls as politicians and managers concentrated on targets for activity together with cost increases driven by NICE's limited powers, generous pay awards, and payment by results. They argue that the NHS needs to give NICE a wider remit, provide incentives for productivity, and measure outcomes.

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Relevant Article

Seven years of feast, seven years of famine: boom to bust in the NHS?

Alan Maynard and Andrew Street
BMJ 2006 332: 906-908. [Full Text] [PDF]