Select Committee on Health Memoranda


Memorandum by the Department of Health


2.1  Overall Expenditure

2.1a  Could the Department provide an updated version of Table 2.1.1, and of the Department's commentary which accompanied it? Could it also show this data in graphical form? Could the Department provide a brief commentary, explaining what expenditure is included under each section of the table?

2.1b  Could the Department identify significant changes between forecast and actual outturn for 1997-98 and between the planned level of spending and forecast outturn for 1998-99, by comparing figures in Table 2.1 with current figures. For each programme the planned level of spending in 1997-98 and actual outturn expenditure should be shown in tabular form.

2.1c  Please identify and explain differences between the 1999 Departmental Report and the figures in Table 2.1.1.

2.1d  What is the Department's assessment of each programme's performance in 1997-98 against plans for that year, and anticipated performance in 1998-99 against plans for that year and outturn in 1997-98?

2.1e  Could the Department explain how it has modified the Purchaser Efficiency Indicator (PEI) for 1999-2000? How is this to be measured? What is the range of Efficiency Index imposed on regional offices and, within regions, the range imposed on health authorities? Has the Reference Cost Index made any impact on the calculation of the Index?

2.1f  Any commentary which the Department wishes to append would be welcome, including information about efficiency gains and a table showing changes in the HCHS cost-weighted index of activity for the latest 10 years for which figures are available. What underlying assumptions have been made over the past 10 years about efficiency gains?

  1.  The information requested on expenditure trends from 1994-95 to 2001-02 is given in Table 2.1.1. Information in trends in total expenditure is also given in Graph 2.1.1. Figures have been adjusted for classification changes, so that they provide a consistent series.

  2.  The NHS element of Table 2.1.1 are on the same basis as Figure 2.3 of the Departmental Report (Cm 4203), in that they reflect the areas in which funds are actually spent, rather than those to which they are initially allocated. Table 2.1.2 gives a brief explanation of the main areas of expenditure in table 2.1.1.

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Prepared 18 October 1999