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The NHS beyond 2015 Facing the new financial reality Paul Corrigan

The NHS beyond 2015

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Presentation to the NHS Confed 21 June 2012.

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Page 1: The NHS beyond 2015

The NHS beyond 2015Facing the new financial realityPaul Corrigan

Page 2: The NHS beyond 2015

May December

1. The financial context2. Why we need to find and

develop new forms of value3. Where co-production fits in4. The People Powered Health

programme

Page 3: The NHS beyond 2015

The new

financial realityis the long austerity

Page 4: The NHS beyond 2015

May December

Meeting increased demand with the same resources will become normal

QUIPP works because of pay freezes - this can’t work for the next 10 years, but deflating tariffs will

The annual goal has to be significantly improved health care outcomes for the same resource

This will only be achieved by doing some cheaper new things to create outcomes that also stop doing some expensive old things

Page 5: The NHS beyond 2015

Getting more value out of the existing business model is important for short term gain

Page 6: The NHS beyond 2015

May December

The overall model that health care

value is only created by medical staff,

their kit and drugs has to be

supplemented by additional value

Page 7: The NHS beyond 2015

We need to find and develop new forms of value

Page 8: The NHS beyond 2015

May December

Page 9: The NHS beyond 2015

The economics of

co-production

Page 10: The NHS beyond 2015

Having previously made a moral case, co-production now needs to demonstrate an economics of value realisation

Page 11: The NHS beyond 2015

Around 66% of the NHS budget is spent on managing long term conditions

Page 12: The NHS beyond 2015

Patients spend 5800 hours a year managing their own condition

Patients spend about 5 hours a year having an NHS professional manage their condition

Page 13: The NHS beyond 2015

What if we spent

those 5 hours improving the efficacy of

the 5800?

Page 14: The NHS beyond 2015

Even though co-production hasn’t set out to demonstrate economic value there are already examples of it doing just that

Page 15: The NHS beyond 2015

People living with depression used significantly fewer consultant appointments and bed days

There were less consultations with mental health trusts

There were reduced DNA rates for appointments

The Health Foundation’s “Co-Creating Health” programme

Page 16: The NHS beyond 2015

The problem is as always in the NHS the money is never really ‘saved’ - this means the input is an additional cost which never ‘saves’ money

Page 17: The NHS beyond 2015

People PoweredHealth

Page 18: The NHS beyond 2015

December

Earl’s Court

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Page 20: The NHS beyond 2015

December

Fewer patients need to be referred to secondary mental health providers and those who are referred will need services for shorter periods of time.

Focus on improving appropriateness of referrals and discharge

Page 21: The NHS beyond 2015

Fewer referrals and shorter average length of stay

Increasing throughput and potentially contract value

or

Reducing commissioner spend

=

Direct economic value

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December

OutputsSuccessfully scaling People Powered Health models

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December

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December

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