Select Committee on Health Minutes of Evidence


Examination of Witnesses (Questions 20-39)

MR ANDREW FOSTER, MS DEBBIE MELLOR, MR KEITH DERBYSHIRE AND DR JUDY CURSON

11 MAY 2006

  Q20  Sandra Gidley: But the demonstrable benefits you talk about are because you are actually paying GPs to deliver certain services and they deliver if they are paid. I cannot see how that is linked to the increase in management.

  Mr Foster: No, but you asked me what the demonstrable benefits were of the increase.

  Q21  Sandra Gidley: The demonstrable benefits of the increase in management and actually most of what you said was related to secondary care, the reduced times for operations. Basically we welcome all that, but I cannot see the benefits in primary care.

  Mr Foster: You cannot just stop doing some practices in a hospital and start doing it in primary care. You need to manage the transition, you need to manage the patient flows and you need to manage the training of the staff who will apply the extra skills. So there is a management task in changing from something which is predominantly hospital oriented to something which is delivered much more in the home.

  Q22  Sandra Gidley: But you also said that there is a lot more impetus to this care close to home and we are now reducing the managers. What have they been doing for five years?

  Mr Foster: The managers have been changing to an environment where there is a greater level of management in primary care, but in response to the workforce statistics that we have seen about the disproportionate growth, what we have found is that the size of unit which is typically commissioning care in primary care, the PCT, has been too small. The big hospital trusts have been powerful organisations and have not been able to be sufficiently bossed around by the PCTs. The plan now is to have a smaller number of much more powerful PCTs, with greater powers of commissioning, building on the work which has been laid to shift from secondary to primary and strengthened by the direction set out in the White Paper.

  Q23  Sandra Gidley: So will the current changes mean a reduction or an increase in the number of managers working at primary care level?

  Mr Foster: It will mean a reduction. The next workforce figures you will see will show a reduction of managers working in primary care trusts.

  Q24  Sandra Gidley: I have never seen a single organisation that has resulted in large-scale management redundancies.

  Mr Foster: It is required. The £250 million manifesto commitment saving is disaggregated to each strategic health authority so that it has to be achieved at PCT level. The process of reducing from 300 PCTs to a number which has yet to be announced, but something of the order of half of that, will result in £250 million of management savings and that will show through in next year's figures.

  Mr Amess: Would you agree that it does not look very good? Nurses in 1999 30% fallen to 29.6%, bureaucrats 6.7% up to 7.7%, senior management 2.2% up to 2.9%.

  Chairman: I was going to put that question back to Debbie Mellor because what Anne Milton was pursuing and what you have just said there is that there is no contradiction. If some parts of the workforce are expanding by a few percent that does not really say there are not more people working in that particular area. That is basically what our witnesses are telling us about these differentials that there are in the tables we have seen.

  Q25  Dr Stoate: At the risk of being politically incorrect, I would have to say that the health service has been woefully under-managed for generations and in fact I have to say that some of the management increases in primary care have been very welcome. I am not talking about the number of administrators but the number of managers, and I really mean managers, is actually extremely welcome and has actually knocked some sense into what has been an extremely disparate sector of the health service for far too long. What I want to move on to is your memorandum which indicates that the focus over the last five years has largely been on expanding the workforce and the memorandum goes on to say that over the next five years, it is going to focus on the transformation of the workforce. Perhaps you would like to explain what that means?

  Mr Foster: The NHS Plan of 2001 produced by Alan Milburn started off with an analysis based on a variety of consultations but one of them was asking the public what they wanted to see. The number one thing that the public said that they wanted to see in 2001 was more staff better paid. What has really happened over the last five years is precisely that. More money has gone into pay, the numbers have increased by about 200,000 and we have introduced new systems of remuneration which are designed to increase the flexibility and productivity of the system. We have achieved the input targets. We are now shifting to looking at the output targets.

  Q26  Dr Stoate: That is my point. We are seeing the extension of numbers; now we want to see the transformation of the service. I want you to explain how that is going to happen.

  Mr Foster: Exactly. Mr Derbyshire on my left is our expert in productivity and I shall pass it on to him in a moment. Broadly speaking, there is a series of measures which have been well described by the former Modernisation Agency of high impact changes which require you to redesign the way services are delivered so that you reduce the length of stay in the hospital sector, you do as much work as day case procedures as you can, you adjust the skill mix of your team so that the work is done by the person who is safe to do the work but is most economically efficient. For example, some years ago you might have seen a doctor taking a blood sample from a patient, then we have had phlebotomists who have been trained to do it, then we have had nurses who have been trained to do it and now we have healthcare assistants who are trained to do it. So the same procedure can be carried out much more economically, effectively by somebody who is a member of the team and who can then be remunerated for taking on extra responsibilities. So that redesign of services and redesign of skill mix will enable us to get a higher output or productivity.

  Q27  Dr Stoate: Are you confident that will happen? All of that sounds lovely in theory and I am quite sure that is the intention, but are you convinced that is actually what is going to happen?

  Mr Foster: That is what is already happening and what we want to do is to accelerate it.

  Mr Derbyshire: If we go back to the NHS Plan in 2000-01, then the decision was made to increase the inputs into the National Health Service by a significant and sustained amount and a lot of the increase in inputs was the increase in labour force which we have seen achieved. Over the past five years the output of the NHS has increased more or less in line with those inputs. What we should like to do is further increase the rate of improvement of the output of the NHS as fast as the increase in the input.

  Q28  Dr Stoate: Could it not be said though that it was somewhat reckless to expand the workforce massively without sorting out the outputs as a priority right from the beginning? All we are left with then are the charges, which we have heard from many members of the Committee today, of a massive explosion in management, but seemingly not enough to show for it yet. Is that not the charge that it is too easy to levy at you?

  Mr Derbyshire: There was a risk with the rapid expansion of the NHS that not all of the increased resources would be deployed on improving patient health. The question about managers is not what the increase in managers has been, but precisely what they have done to facilitate improved health outcomes.

  Q29  Dr Stoate: That is exactly the question. What have they done? It leaves open the question. We have seen the massive expansion, we can look at the huge input into the health service, but can you honestly say that enough has changed to justify that?

  Mr Derbyshire: In aggregate terms, we can, and working with the ONS and the Atkinson review of How to Measure Government Outputs, if you move away from crude measures of what the NHS produces in terms of patient treatments and begin to look at the quality and the health benefits those treatments deliver, then output has risen in line with inputs. Then there is a micro question about whether the mix of inputs is correct. Andrew made the point about PCT managers that maybe the organisations themselves were badly configured; they were perhaps too small for the role that they have gradually been evolved to do and we are putting that right for the future. One of the underlying reasons for their smallness to begin with was to work together in a community of GPs to organise services at primary care level as well as commission from secondary care.

  Mr Foster: On the point you made right at the start of your question about management, if you do patient surveys or if you even think anecdotally of the instances you know of where friends or relatives of yours have been using healthcare systems, by and large the time that they spend with the clinician is excellent; they have a fantastic service. It is their travel through the system that is often unsatisfactory and it is more management of the pathway that is needed and better management and that is really what we are trying to achieve in line with international best practice. We spend less than 3% of the NHS pay bill on managers and that compares well with anywhere else in the world.

  Q30  Chairman: May I just ask you about this issue of transformation? We are all very well aware of what the public's attitude was to the NHS Plan: more staff and better paid. In a recent interview that you gave to the British Journal of Healthcare Management, when you were talking about the workforce side of this, you said that we have to lose 1940s ways of working and need a more flexible workforce with more patient-centred care. Did you genuinely feel that there were still 1940s ways of working in the National Health Service? Not in whole, but in part or in whole?

  Mr Foster: Yes. I have given one example already, which was taking blood samples. Take another example, prescribing. We now have nearly 10% of the nursing workforce doing some form of prescribing. Several years ago only doctors prescribed. Now that is about really dramatically changing the division of labour within the workforce and allowing people with appropriate training to carry out tasks which they are perfectly skilled to do. Nearly 10% of the nursing workforce is a very large amount of transformation indeed, but that hides a plethora of exciting new roles. In any healthcare organisation you visit you will not only find these extended roles, people doing tasks that they did not do before, but you will find some completely new roles. We now, for example, have approximately 800 emergency care practitioners who are people who will deal with sick and elderly patients in their own home, avoiding them being admitted to hospital, which is not just an economic benefit to the system, it is infinitely preferable for the patients themselves. We could go on to give you countless examples of new roles in the therapies, in science, GPs with special interests, which are really about the transformation of the workforce away from the rather rigid silos of apples and pears, nurses, doctors and so on that there used to be.

  Q31  Anne Milton: Would you expect the pay to go with it? Doctors at one time prescribed and they were the only people who prescribed, then nurses extend their role and start prescribing. Would you expect, say, if you took nurses, that they would get increases in remuneration to reflect that?

  Mr Foster: Yes.

  Q32  Sandra Gidley: The accusation is that they become a cheap labour force. It is cheaper for nurses to prescribe than it is doctors.

  Mr Foster: No. It is cheaper for nurses to prescribe than doctors, and if you train a nurse to take on a significant amount of extra responsibility and pay them for taking on that extra responsibility, you have a win-win. You have a better opportunity for the nurses.

  Q33  Anne Milton: You would expect pay to increase with the extension of role.

  Mr Foster: That is exactly what Agenda for Change is designed to do. It is actually to incentivise people to take on added responsibilities and pay them more for it. If you look at the pay bands of Agenda for Change, band five is a newly qualified nurse, band six is probably a ward manager but then you see nurse endoscopists, cardiac theatre nurses and a whole range of extended roles at band seven and above reflecting the fact that they have taken on extra responsibilities.

  Q34  Anne Milton: There is some concern about that within some of the professions within the NHS. It is not so much an increase but equivalent pay scales that they are looking for.

  Mr Foster: The whole system is based on a very complex job evaluation scheme which took seven years to develop but working in partnership with the trade unions. It is probably the most thoroughly tested job evaluation scheme anywhere in the world and is widely regarded by the trade unions as a very successful joint development.

  Q35  Chairman: Are there any practical measures beyond Agenda for Change that workforce planners are using to get this transformation in terms of maybe skilling?

  Mr Foster: Yes. May I broadly say that we recognised that in workforce planning there is a degree of bottom-up: how many people are going to be retiring over the next few years? There is a degree of top-down: what are the major changes in demography, technology, international immigration? Then what we do is some skill specific analysis: what are the skills we need for cancer services of the future? Rather than saying we need to commission so many more nurses or so many more physiotherapists or whatever, we are looking at the competences that we require as an added input to workforce planning. Judy sits at the heart of this complex web, so may I perhaps ask her to answer that?

  Dr Curson: You are asking about what workforce planners can do to support transformation.

  Q36  Chairman: Yes, practical things beyond Agenda for Change.

  Dr Curson: One of the issues is that as workforce planners we can come up with plans. It is down to trusts and to service managers in the trusts to implement those and that can be an issue with new roles. For example, graduate mental health practitioners, where a new role was developed which crossed the boundary between social work, OT, nursing. Sometimes it can be difficult to convince service managers in trusts who are under a lot of pressure to take on new roles and to work in different ways, so one of the things is for workforce planners not to work in isolation and come up with great dreams of wonderful new roles that will make a difference, but to ensure that that is embedded in the way people work locally and that they actually want the roles and are going to know how to use them. A number of projects are going on nationally and at local level to try to support people to make those changes so that workforce planning does not take place... We have talked about it not taking place separately from financial planning, but it is actually very important that it is not separate from service planning because otherwise there is a risk that workforce planners come up with new roles and then no-one wants to employ them.

  Q37  Jim Dowd: There has been a significant number of changes in workforce planning in the last five or six years. I just mention the National Workforce Development Board replaced by the Workforce Programme, the Workforce Numbers Advisory Board replaced by the Review Team. Why have there been so many changes and surely they are more disruptive than beneficial?

  Mr Foster: What you are describing are not fundamental changes, these are evolutions. So for example, you talked about the Workforce Programme Board and its predecessor the National Workforce Development Board, there was really a sort of modest adjustment of the membership of effectively the same body to make sure that we had better representation from strategic health authority management. There is no fundamental change going on there.

  Q38  Jim Dowd: Are you saying then that was because the SHAs developed over time and the relationship needed to change?

  Mr Foster: Yes; exactly. The original National Workforce Development Board was a stakeholder board which sat at the pinnacle of the workforce planning process and we recognised that we needed to get a better buy-in from the strategic health authority management. That is why that changed.

  Q39  Jim Dowd: Then of course the SHAs were reorganised.

  Mr Foster: And then the SHAs have been reorganised, but all that will mean is that there will be different individuals, but we will still have the SHAs represented within the process.

  Dr Curson: I would echo some of that; a lot of it has been evolution. My team used to make recommendations on medical workforce to a body called SWAG. It then made recommendations to the Workforce Advisory Board and now we go to the Workforce Programme Board. Basically the team has been doing very similar work with the same group of stakeholders over that five-year period, so it does feel more evolutionary than revolutionary in that sense, although I accept that there have been a number of changes.


 
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