Value for money in the NHS - Health Committee Contents


Memorandum by the Royal College of Nursing (SAV 08)

VALUE FOR MONEY IN THE NHS

1.  INTRODUCTION

  1.1 With a membership of 400,000 registered nurses, midwives, health visitors, nursing students, health care assistants and nurse cadets, the Royal College of Nursing is the voice of nursing across the UK and the largest professional union of nursing staff in the world. RCN members work in a variety of hospital and community settings in the NHS and the independent sector. The RCN promotes patient and nursing interests on a wide range of issues by working closely with the Government, the UK parliaments and other national and European political institutions, trade unions, professional bodies and voluntary organisations.

1.2 The RCN welcomes the opportunity to submit evidence to the one off Health Select Committee inquiry on value for money in the NHS.

1.3 This submission will demonstrate how the nursing profession can deliver value for money and high quality care whilst illustrating the hugely detrimental effect cutting frontline services will have. The RCN firmly believes that efficiency and value for money in the NHS can be found through investment and support for services like specialist nursing that focus on quality. This submission highlights specialist nursing as a case study in which the nursing workforce demonstrates cost saving measures whilst delivering the highest quality of care.

  1.4 The RCN recognises that an effective way to cut costs is to reduce hospital admissions. One way to do this is to treat more patients effectively in the community by skilled staff who are able to keep patients as healthy as possible in their own homes. Making the shift to treating more conditions in the community will require a long term consideration of what patients need and an assessment of the impact on the quality of care.

  1.5 The solutions to this will be complex, involving all parts of the health service working together in the shift from acute to community care. With many hospitals already running at capacity, simply cutting bed numbers without planning for the long term would be irresponsible.

  1.6 The economy is changing and as we move out of a recession we must look to protect health care spending at the same time as focusing on the services which provide value for money and will in the long term bring down health spending. The NHS is a massive economy and change will not be seen overnight or even in the short term.

  1.7 In order to see long term reform and reduction of the huge costs involved with issues such as smoking, obesity and expensive long stays in acute trusts there must be consistent and continued funding of services now. This can only be done through examining fields such as specialist nursing and public health which take a holistic approach to patient care.

2. NURSING AND THE ECONOMIC CONTEXT

  2.1 The RCN recognises that the NHS is facing one of the most significant financial challenges in its history. Government borrowing and economic conditions have resulted in significant public sector borrowing and a massive budget deficit that the Government will have to address. The NHS Chief Executive David Nicolson has stated the need to secure substantial "cash releasing efficiency savings" in the NHS budget of between £15 billion and £20 billion between 2011 and 2014, a message that was recently conveyed directly to clinicians by the Department of Health.[14]

2.2 There is concern that funding cuts and the drive for efficiency savings could result in "slash and burn" tactics, bed closures, cancelling of new services and staffing reductions. During the NHS deficit crisis of 2005-06 training budgets were one of a number of targets for savings. This resulted in periods of "boom and bust" workforce planning with consequent knock on effects for the nursing workforce.

  2.3 Staff could not be replaced quickly when the cycle returned to "boom". Vacancy freezes resulted in fewer jobs for newly qualified nurses and nursing roles considered expensive, such as specialist and nurse consultants, were also targeted for savings. Lessons must be learned from the past about the damaging effects to the entire health sector caused by short term cuts in order to achieve financial gain.

3. CASE STUDY—SPECIALIST NURSES

  3.1 An example of nursing innovation and how the nursing workforce can actually save the NHS money, whilst delivering the highest quality of care, is in specialist nursing posts. A recent RCN report[15] set out the benefits that specialist nurses provide, benefits in the quality of care and also the economic savings which can be made by their employment.

3.2 During the NHS deficit crisis of 2005-06 specialist nursing posts were hit hard by trusts attempting to save money. The RCN is concerned that under current financial constraints history will repeat itself in the shape of cuts to these highly skilled and highly valued nurses. Cuts to these services would effectively result in a down-skilling of the nursing workforce and the undermining of patient care.

  3.3 Specialist nurse posts save millions of pounds from health budgets through a variety of means including:

    — reduced waiting times;

    — avoidance of unnecessary hospital admission/readmission (through reduced complications post-surgery/enhanced symptom control/improved patient self-management);

    — reduced post-operative hospital stay times;

    — the freeing up of consultant appointments for other patients;

    — services delivered in the community/at point of need;

    — reduced patient treatment drop-out rates;

    — the education of health and social care professionals;

    — the introduction of innovative service delivery frameworks; and

    — direct specialist advice to patients and families.

  3.4 For example, the Parkinson's Disease Society states that specialist Parkinson's nurses save the NHS £56 million.[16] By treating multiple sclerosis flare ups at home rather than in hospital an estimated £180 million could be saved[17] and £84 million could be saved by using epilepsy specialist nurses rather than using GP services to manage the condition.[18]

  3.5 Today's specialist nurse takes a leading role in making sure patients get the best care possible. Several studies have shown that as a substitute for other health care professionals, including doctors, specialist nurses are both clinically and cost effective. As an increasing number of people in this country are diagnosed with long term conditions, these experts will become even more invaluable to the health of the nation.

4. FINANCIAL CONSTRAINTS ON SPECIALIST NURSING

  4.1 The potential of specialist nurses to drive up safety and the quality of care, and to improve patient outcomes is under threat. Specialist nurse posts should be supported through robust long term funding. Short term funding of up to two years, which is increasingly popular, makes these posts extremely vulnerable to cut backs by trusts looking for immediate savings.

4.2 Despite the evidence of the positive impact in terms of patient care enshrined in national guidelines, no other group has been targeted to such a degree in the wake of NHS financial pressures. Specialist nurses were one of the groups hardest hit by the NHS deficits crisis of 2005-06. A poll of specialist nurses (RCN, 2008) showed:

    — more than one third of specialist nurses reported their organisations had a vacancy freeze in place;

    — 47% reported they were at risk of being downgraded;

    — 68% reported having to see more patients;

    — one-in-four faced risk of redundancy;

    — half were aware of cuts in services in their speciality; and

    — 45% were being asked to work outside their speciality to cover staff shortages in general clinical settings.

  4.3 Two years later, a further poll (RCN, 2010) has demonstrated that more than a third of respondents to the RCN survey have seen cuts in services over the last 12 months, and 57% are concerned that posts will be threatened in the near future. 95% of the respondents who have seen cuts in services say it is the NHS who have cut or reduced funding for specialist nurses. This raises significant concerns that posts and services could be lost altogether as funding streams dry up.

  4.4 As we enter another period of constrained public spending, many specialist nurses now face serious organisational and funding challenges that are inhibiting their ability to deliver high quality care. Specialist nurses add value to patient care, while generating efficiencies for organisations through new and innovative ways of working and must be protected.

5. THE VALUE OF NURSING

  Nurses are involved in almost every facet of care. Over recent years nursing teams have reengineered their roles to assume a higher range of clinical responsibilities, and successfully adapted to using new systems to improve patient care. Therefore, the nursing contribution to care needs to be explored further in the context of the incentives described above and not just aggregated as a simple workforce cost.

5.1  The total "value" of nursing will depend upon the current number, skill mix and the ways that the workforce is deployed. There is increasing weight of evidence showing the negative consequences of reducing nurse numbers leading to increased mortality rates. In order to combat this, the RCN has called for regular staffing reviews, which are then reported to Trust Boards, to guarantee safe staffing numbers and the highest level of care for patients. Skill mix is just as vital, it is not just overall numbers which matter.

  5.2 In this new challenging financial climate the NHS will have to make even more difficult trade off decisions about what it will and will not offer. Decision makers must avoid making short term decisions, ensuring that they consider the full value of nursing, and the negative consequences when nurse numbers are reduced, when considering how to best allocate scarce resources in the health care system.

  5.3 Alongside this, it is vital that the voice of nursing is adequately represented at all levels of governance of the NHS to identify how the NHS can become more efficient and to curb any unnecessary and inappropriate changes to staffing levels.

6. BENEFITS OF INVESTING IN PUBLIC HEALTH

  6.1 Nurses have a significant ability, and are ideally placed, to influence behavioural change within a health promoting environment.

6.2 Nursing achievements in the public health sphere are visible and measurable, impacting on individuals, specific groups and the population at large. The RCN Document Nurses as partners in Delivering Public Health identifies a number of aims in delivering public health through nursing services:

    — increased life expectancy by influencing healthy behaviours;

    — reduced health inequalities—for example, targeting vulnerable populations to improve health out comes and access services;

    — improved population health—For example, reducing obesity, alcohol abuse, improving sexual health behaviour;

    — increased awareness of positive healthy behaviours in communities; and

    — engaging with individuals, families and communities to influence service design.

  6.3 The benefit from achieving these goals is significant and reduces the future burden to the NHS by delaying or preventing illness. Alcohol misuse, smoking and obesity is largely calculated at costing the NHS over £11billion per year. While there are many visible examples of public health nursing that make a substantial contribution to this, there is a lot of good public health nursing practice that is carried out locally but does not achieve the widespread recognition which it deserves.

7. PAYMENT BY RESULTS AND NURSING

  7.1 Although efforts have been made within the Payments by Results system to wholly quantify nursing, nursing costs are still too often treated purely as workforce costs, allocated on the basis of the amount of time spent with the patient, for example, theatre hours or bed days. There is little recognition of nursing efforts/inputs, patient dependency and skills. The RCN believes that this absence of a full and comprehensive understanding of nursing costs and contribution to the overall process of patient care, may lead to nursing workforce numbers and skill mix being subject to inappropriate cuts as was seen during the deficits crisis of 2005-06.

7.2 The costs of nursing are all too often identified simply as the wage bill for nursing staff. The precise costs of nursing reflect both central and local decisions about wage rates, nurse numbers, skill mix (a higher skilled workforce will typically cost more), education, training, and international, national and local labour market conditions.

  7.3 The benefits of nursing are somewhat more difficult to identify. The term benefit is used interchangeably with value. There are a number of reasons why identifying the value of nursing is a challenge:

    — the value of nursing includes both tangible and non-tangible components and intangible components are inherently difficult to identify and measure;

    — it can be difficult to separately identify the contribution of nursing to health (alongside the wider issues of measuring the contribution of the health care system in general, to the production of health); and

    — the value of nursing includes the impact on patients, their carers, the health care system, and the wider economy. This poses a challenge to capture the value to each of these stakeholders in the system.

Royal College of Nursing

March 2010







14   The NHS Quality, Innovation, Productivity and Prevention Challenge: an introduction for clinicians. Department of Health, March 2010. Back

15   Specialist nurses, Changing lives, saving money. Royal College of Nursing-February 2010. Back

16   Parkinson's Disease Society, 2006. Back

17   Estimate based on a saving of £1,797 per patient from a scheme to treat patients at home, developed by the University College London Hospital Foundation Trust. Back

18   Estimate based on a saving of £184 per patient per year from correct specialist diagnosis and reduced GP visits. Back


 
previous page contents

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2010
Prepared 21 July 2010