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Health service to contribute £4.4bn in savings
25 March 2010
The Department of Health and the NHS have been charged by the government with delivering £4.35 billion worth of a total £11 billion per year in planned cost savings by 2012-13.
Aimed at reducing the UK''s deficit substantially in the wake of the financial markets crisis, the plans were announced by chancellor Alistair Darling in his annual Budget on March 24th.
Almost half of this target will be met by the health service, which is expected to apply operations management solutions to save significant sums.
Ministers have identified a series of areas in which expenditure can be reduced, including pushing down procurement costs, adopting new IT policies, driving down energy usage, using NHS estates more efficiently and tackling absences through staff sickness.
Health secretary Andy Burnham remarked: "To go from good to great, the NHS must become more preventative, more people-centred and more productive."
The efficiency savings will contribute towards protecting key public services and are to be delivered in line with the government''s Operational Efficiency Programme, which will also be applied to other departments to generate cost reductions.
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