Select Committee on Welsh Affairs Minutes of Evidence


Examination of Witnesses (Questions 40 - 54)

MONDAY 19 JANUARY 1998

MR WIN GRIFFITHS MP, MR PETER GREGORY, MR COLIN WILLIAMS, DR RUTH HALL and DR GILL TODD

  40. Have you made an estimate of how much management time will be involved?

  (Mr Griffiths) Peter, I do not think we have made an actual estimate of that because it would involve you spending a lot of time on something.

  (Mr Gregory) What we have done is undertaken a risk analysis of what are the factors which are at play when we are going through the reconfiguration process and one of them which we are clear about and the NHS has discussed with us is the issue of the extent to which the NHS managers and clinicians are beavering away on plans for trust reconfiguration and they cannot be doing other things, and we accept that that is the case. As the Minister has said, however, the Government believes that the configuration of trusts in Wales was so ad hoc, if I can put it that way, and in need of proper evaluation and consideration that we have gone about this in a way which tries to bind the NHS in as active participants and leaders of the exercise at the local level so that we will get out of it a configuration of trusts which makes more sense, not just in terms of making savings through management costs, but, more importantly, through making sure that the management of clinical services is better configured and we hope to get some benefits out of that. However, you are quite right, that there is a risk in all of this that people will take their eye off the ball. What matters in that sense is the extent to which we at the centre through the health authorities and through them to the trusts are able to sustain the degree of downward pressure that is needed to make sure that the NHS as a whole responds to the emergency admissions issue throughout the year and, in particular, in the lead-up to the winter. Finally, I should say that we are not oblivious to the kind of distraction that you are describing and we understand that that is a factor and we are actively working with the NHS to make sure that the risks, and there are other risks as well in this process, are properly managed.

  41. Can I put it to you in terms of the £9.5 million that I think the trusts have indicated to us that they would have preferred in an ideal world to have been told much earlier in the year that this money was available. Is that something that you are conscious of and sensitive to?

  (Mr Griffiths) Yes, the view that I take on this is that it was better to have been able to make that announcement and make the money available than to have not been able to make the announcement. I appreciate very much that the health authorities and the rest of the NHS in Wales has had to work very hard to put together these proposals for improvement and I am thankful and very grateful for that, just as I am for all the work that is going on in relation to reconfiguring the trusts. What I am hoping is that out of the additional work and out of the risks that are there, we will, nevertheless, be able to manage this process through and at the end of it come out with significant additional monies to be spent on health care in Wales.

Mr Caton

  42. Minister, it has been suggested to us by trusts across Wales and others that there is now a shortage of nurses available for recruitment and also that it is difficult to recruit additional medical and social care staff on a short-term basis. What is your reaction to this and do you perceive a more general recruitment problem?

  (Mr Griffiths) I would certainly acknowledge that there are difficulties in the recruitment of nurses in specific specialties, such as intensive and critical care. That is certainly the case. In theatres, too, in accident and emergency, yes, there are, if you like, hot-spots where additional nurses are required. If we look at the size of the recruitment pool in Wales, we do not have precise figures, but we know that there are about 31,000 registered nurses in Wales and that currently about 17,000 of those are involved in the Health Service. Our own Education and Training Group has examined the problems here about recruitment and retention and they will be reporting back to us on how to deal with those problems. At the same time we have to recognise that there are a certain number of nurses every year, young people in the main, but older ones as well, who will go on to training courses and at the end of the day not then use that skill or expertise or even drop out perhaps just before the course is completed and these current wastage rates are running at about 6 per cent. We also recognise that within trusts there are different problems about recruitment. Some trusts have got relatively few recruitment problems and others have got more serious ones. In Bro Taf and in Morgannwg, for instance, we are aware of some recruitment problems. As I said, the Education and Training Group is looking at these issues and they are going to report back to us. This problem has been recognised previously: in 1996, for example, when £70,000 was made available by the Welsh Office to fund return-to-nursing courses. So, to sum up, we recognise the problem, it does vary from place to place, and our Education and Training Group is looking at it to see what can be done to overcome it for the future.

  43. Would you accept that the non-recurring nature of the £9.5 million has presented a particular problem to some trusts in that with these recruitment difficulties, actually utilising the money for what probably they would prefer to use it for, increasing personnel on the wards, is not realistically an option because they just cannot recruit people and, therefore, they look for capital expenditure or something else?

  (Mr Griffiths) Well, in the case of this £9.5 million, that would not be used for capital expenditure. This, principally, is about trying to make sure that there are more effective services available. Some of the money, for example, has been used in arrangements with local authorities to provide better nursing care in the community. Really, I suppose, in each area there has been a combination of the things that can be done to ease the problem, looking at the resource available and trying to match the two and perhaps in different health authority areas there have been different priorities, depending upon the additional professional resource that is available. I would agree with you, that it has not been an easy thing to manage, but I think on the whole the NHS has been reasonably happy that it has had the problem to grapple with and to use the extra resource.

Mr Livsey

  44. The NHS Confederation, Minister, also suggests in its submission that it might have been preferable to have concentrated the extra funding solely on emergency admissions on the grounds that this would have had in any case a beneficial effect on waiting lists. What led you to adopt a two-pronged approach?

  (Mr Griffiths) Well, because we believed that whilst we wanted to concentrate to a degree on making sure that an emergency admission would go straight to a hospital which was open, whether it was the local one or the next available one, that in setting the health authorities and the NHS that challenging target, if we did not also say, "But look, you are also free to use some of this money to make sure you keep an eye on your elective waiting lists", it might have been that the elective waiting lists would have grown longer and, therefore, by asking health authorities both to address the emergency problem, but not to forget the elective waiting lists, we would help to manage both together. Because I think, in a way, as the NHS Confederation is implying, the two things do run together and by making emergency admissions the priority, but saying, "Don't forget about the elective lists and you are free to use some of the money for that as well", I think we will deal with the emergency problem, but not allow the elective waiting list problem to get too far out of hand as it so easily could.

  (Mr Williams) Could I just add two things? I think there is an element of "red herringry" in that suggestion by the Confederation because the text of the letter which invites the NHS to put in bids to use the £9.5 million not only makes, I hope, transparently clear that the priority is on the management of emergency activity over the winter months, but also gives some ideas for the way in which that money might be spent in addressing that problem. So it ought to be clear, and I think it is clear, to the NHS that the key priority is the management of emergency activity over the winter months. In his speech to the Confederation Conference before Christmas, the Minister made quite clear that the pressures of the winter might very well lead to increases in parts of the elective lists and that part of the money could be used to contain and address that problem, without losing priority for the management of winter emergencies. So I do not think there is any confusion in the NHS about the priority which attaches to the use of the £9.5 million.

Mr Jones

  45. Minister, not unnaturally the witnesses have told us that they would like more money next year as well and the year after. Can you hold out any hope for them?

  (Mr Griffiths) I think, if I could just say, next year there is going to be £2,455 million going into the National Health Service in Wales and that is almost £114 million more than this current year. It is a cash increase of 4.9 per cent and a real increase of 2.1 per cent. We have also asked the Health Service itself to find some efficiency savings so that between the two we are certainly hoping that we will get more patients treated next year than before. We will get an effective emergency service bringing down again the number of days on which hospitals have to close during a year, and again we would hope that some of the lessons learned from this year will help to improve the service next year. I suppose this does give me an opportunity to underline that I can see no prospect of being able to find £9½ million additional in the late summer/early autumn to go into dealing with the increasing emergencies we are likely to see next winter, but what I am hoping is that the additional resources which has been made available on top of what was planned for next year and the lessons learned from this year will mean a more effective use of resource and also improve the long-term planning of health care in Wales.

  46. So no more extra money next year?

  (Mr Griffiths) I would say no more extra money and, although perhaps I should not say this, the fact is that we want to make sure that we can meet the demands which are already in the system which are giving us a great deal of food for thought in making sure that the Health Service can continue to cope with the demands upon it.

Ms Morgan

  47. Llandough Trust suggests that trusts are being asked to do too many things with very stretched resources and says that inevitably there are a "few occasions when all the balls cannot be kept in the air", and the University Hospital of Wales Trust also makes the same point, asking for clearer priorities for the targets that they have to achieve. Do you agree that there needs to be a clearer hierarchy for priorities in the NHS?

  (Mr Griffiths) I would have thought that the planning framework and the guidance and the priorities that we have provided, yes, they are challenging and yes, it does mean that you have to keep your eye on more than one ball in the Health Service. But there is a strategic framework and I believe it cannot be too prescriptive in saying, "Every one of these priorities we have identified has got to be treated in exactly the same way" because in different health authority areas, different priorities apply. For example, historically it would be the case that in South Wales far greater attention will have needed to be provided on dealing with the emergency admissions problem than in North Wales. We know that in North Wales now that that is becoming a bigger problem and given the nature of the NHS in Wales, there is a fair chance that they will be able to pick up tips on good practice from South Wales, so I do not think we should reduce the aims and objectives of the Health Service in Wales. There is the broad strategic framework in each area and in each trust; they will have particular issues to tackle and I think perhaps what I ought to say is that I would not expect every trust just to look at the framework and say, "We have got to give everything absolutely equal treatment". But what they have got to do is to look at the service they are providing and to make priorities where they see the greatest need. Peter, I do not know whether you would like to add anything to that.

  (Mr Gregory) Yes, I would like to say one or two things. One is that I think in the way you couched your question, the fact of the matter is that we do prioritise these things and our plans and priorities guidance for the NHS in the last two years has been absolutely clear about what the priority is. The second thing is which element do you take out? This is a whole system problem. It is about the way in which resources are used, the way in which the NHS responds to need, the way in which the NHS accounts for the way in which public resources are utilised in support of a great national public service. As a consequence, the NHS has to go on managing this in a way which recognises the interdependence of these elements and the fact that we are talking about a whole-system problem and not isolated packages of management activity which are unrelated to anything else. So I would want to impress on you that we have sought to prioritise and the priority has been given to emergency and critical care explicitly. But trusts also have to manage their money properly because if they do not, they cannot deliver services, and at the same time they have to respond to public requirements as to standards and quality and if the NHS were not doing that, then I think your constituents would be trying to convince you that that is precisely what it should be doing, so what we are trying to do is to balance all of those things in a management system which does give priority to emergency admissions, but also tries to keep the attention of the NHS on other things which are critically important to success.

  (Mr Griffiths) Could I say that this was a particular concern of UHW and of course UHW in many ways is a unique institution in Wales and it has got several regional specialties there. There is the teaching component involved with the university medical school and yes, I recognise that at the UHW perhaps they have got more balls to juggle than elsewhere in the Health Service, but I would hope that whilst they obviously recognise the difficulties here, they are able to meet them to a very large degree and appear to be doing so, and I would thank them for that.

  48. Obviously this question arose from concerns expressed by the two trusts, both of whom serve my constituency, so there obviously is some concern that they perhaps do not feel they have got enough.

  (Mr Gregory) If it was not so difficult, it would not be so interesting! That is the other thing to bear in mind.

  49. The UHW Trust points out that having to cancel elective surgery in order to admit emergencies does have quite an impact because it obviously makes the waiting lists longer and makes the hospital look inefficient. I can remember on many occasions taking up the cases of people who had had their surgery cancelled, as I am sure most MPs can, which causes a lot of misery and distress. Also there is a loss of money because I think the UHW lost £250,000 that way, as it says in its submission, in 1996. What are your views on that?

  (Mr Griffiths) Yes, we recognise the fact that if a hospital, because of the number of emergency admissions it receives, has to cancel elective operations, then it loses money which had been provided to do those operations. In this particular context of course, this has led to the inequities of GP fundholders being able to purchase, because they have the money to do it, from hospitals extra surgery. Now, what we did in May when we came to office was to say that where emergency activity across a health authority runs ahead of plans and puts elective activity for non-fundholding patients at risk, then fundholding budgets would be reassessed and adjusted where this was appropriate to try and make up for what in effect was a loss of funding for the health authority. I will certainly look with some interest as this year draws to a close to see what impact that has had upon helping places like UHW cope with the loss of some of its elective surgery cases.

  50. I think also the emergencies that UHW are dealing with are often much more complex and again that has got financial consequences.

  (Mr Griffiths) Yes.

  (Mr Gregory) It should be said, just looking at the future and trying to solve some of these problems, that if we can implement the proposals in the very recent White Paper about long-term agreements between health authorities and trusts, it ought to provide a framework within which this can be handled, not on the basis of a bilateral annual dog-fight about what the volumes, quality and costs should be, but a rather more strategic appreciation of what is needed over a number of years and within a broad consensus about what are the health needs in the area and how should health services be provided for them. So in terms of trying to solve the problem, there is always going to be a tension, in view of the degree to which we are requiring productivity out of the system, between health authorities and trusts over this issue, but the development of a longer-term way of managing that ought to provide a more sensible basis upon which to try to tackle it.

  (Mr Griffiths) We are also meaning the Local Health Groups, but the GP fundholding status will be abolished, but all of those, if you like, more positive parts of GP fundholding which give doctors a greater say in how care is developed both at the primary and, what is more, at the acute level will help to deal with some of these problems as well.

  (Mr Williams) One of the first actions taken by the Government after coming to office in May was also to develop proposals for the provision of common waiting lists from the 1st April 1998 which will help to balance out the differential effect of elective and emergency activity in different health authority areas and between fundholders and non-fundholders and will help underpin the development of long-term agreements which the White Paper anticipates.

Mr Caton

  51. In their submission, the NHS Confederation said that they would like to see the exploration of the possibility in future years of using resources "for specific purposes that cross departmental boundaries", and they give the example of heating vouchers for the elderly. Has the Department looked at this possibility as it certainly seems to be in line with the more holistic approach that you have certainly advocated today, Minister?

  (Mr Griffiths) Certainly I would agree with you that prevention is better than cure in this case and what we have got to look at later on this year is that there will be a public consultation document which will suggest a strategy to take account of the sort of issue which you have just raised with me. Of course, whether it will be able to be done in the very direct way that the NHS Confederation suggests is something that we will have to look at, but certainly we are aware of the fact that links between housing and other possible health determinants are not sufficiently well understood and we need to be able to make assessments about that and what can be done. For example, in the current initiative on the money being made available from previous capital receipts, one of the priorities that we have put there is that of energy conservation and there are already programmes going on of course. But this would be another opportunity for housing authorities to do more in improving conservation standards, particularly in homes of pensioners and also of, from my constituency experience, families with young children. Certainly I would be keen to follow that agenda and we will be making some proposals for further research on things like that as part of our new health strategy and something will be out before the end of the spring for us to look at in Wales. On top of that of course there is at the UK level the Comprehensive Spending Review and that is looking at how scarce resources can best be spent across programmes and departments and certainly, as you have said at the end of that contribution, Martin, we are very keen to adopt a holistic approach to these problems and we look forward to more of that work to make better use of taxpayers' money, whichever department it happens to be lodged with in the Welsh Office.

Ms Lawrence

  52. I assumed earlier by the way that when the Minister stated that there will not be any more money for health next year, he means an extra £9.5 million on top of Wales' share of the £1.5 billion given by the Chancellor?

  (Mr Griffiths) Yes, in the figures I gave, the £113.8 million extra includes the £60.2 million which was our share. It includes that, plus we were able to find in the review of our spending that when the Chancellor actually made that announcement, since then the GDP deflator has changed a little and we were able to find a little bit of extra money to put in to take account of that, so that money is in the figure of £113.8 million.

  (Mr Gregory) If I might just follow that up, with your permission, it comes back to something Mr Ieuan Wyn Jones was hinting at. We have to cash-manage the NHS every year and that involves brokering agreements with health authorities and, sometimes, the trusts about how they are to cope with financial and other pressures on them. We will be doing that next year as we have been doing it for the last few years. I have to say that is becoming a more difficult issue to manage, as I think is self-evident from just reading the newspapers and watching the television, but although there will be more money in the system if it is needed to cash-manage, that is not the same as putting money in for a specific purpose like this.

  53. The essence of my question really was more general, as we are drawing to a reasonable close now, I think. You did mention earlier the need to work together in a more focused way and Dr Todd mentioned the necessity for co-operation between the key players in dealing with emergency admissions. Also I noticed that the University Hospital of Wales say that emergency admissions should be considered in the wider context of all the changes being made in the Health Service in Wales and not considered in isolation. Do you feel that all these issues confirm that the demarcation lines that have arisen within the Health Service over the last few years have actually exacerbated the problems with emergency admissions?

  (Mr Griffiths) I suppose in one sense it would be better for the previous administration to make judgments about that. I think from our point of view what needs to be looked at is what we are trying to do to make the provision of health services and health care better in Wales and obviously in our White Paper we are seeking to provide for better co-operation, particularly through the Local Health Groups, in bringing together all the NHS players and the local authorities and also, by the way, because I think it was either Colin or Gill who laid some emphasis on the work where voluntary bodies like Age Concern provide help and care which contributes towards what is done in the Health Service, there will also be an opportunity for those voluntary groups to be involved in the decisions about the development of health care locally, so, without wanting to comment about what has happened in the past, I think it is very clear that we have an agenda which is going to provide structures to make co-operation much easier and we believe provide more effective health care.

Chairman

  54. Finally, Minister, what impact is the reorganisation of the NHS in Wales likely to have on emergency admissions?

  (Mr Griffiths) Well, we believe, through our Local Health Groups initiative, that it will help to deal with those more effectively. I would also hope, setting that aside, that everything else that is being done will help us to manage this problem and I hope we will see better care in the community, people able to move out of hospital quicker because there is that care there for them, but I would not point to one part of our reorganisation plans in particular; I would say that all we are doing in reorganisation terms to provide a more effective service and to ensure that there is more money available for health care along with all that we can learn from the experiences of this winter will help us deal with emergency admissions even better in the future.

  Chairman: Thank you, Minister. Thank you for your help and your hospitality.


 
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