NHS efficiency savings could conflict reforms - MPs

MPs have voiced concerns that the NHS reorganisation might conflict with the government’s aim of saving £20bn while maintaining patient care standards.

They also raised issues regarding the potential effects of under-estimating the reforms' cost and lack of a high quality risk management protocol for either the commissioning or providing bodies.

The British Medical Association (BMA) supported the findings but said its fears went further.

Dr Hamish Meldrum, chairman of council at the BMA, said: "Having already been set the massive challenge of cutting costs by £20bn, the NHS in England is now facing the most fundamental reorganisation in its history.

"The Public Accounts Committee (PAC) is right to highlight the risks posed by such a massive restructuring at a time of financial crisis. However, it is not just the timing, but also the direction of travel of these reforms that will cause problems.

"We share the concerns of the PAC that the consequences of increasing competition in the NHS have not been fully addressed.

"Market failures in healthcare have far more serious consequences than in other industries - and may have little connection with quality of care, or even patient demand," he added.

The Public Accounts Committee examined the value for money risks and implications of the Health and Social Care Bill and Rt Hon Margaret Hodge MP, Chair of the Committee, explained: "The Department of Health has acknowledged the risks associated with this radical shake-up of the NHS.

"While the reforms could complement the imperative of achieving £20bn efficiency gains by 2014/15, the reorganisation might also distract those responsible for making the savings while safeguarding standards of patient care.

"Furthermore, if the Department's estimate of the one-off costs associated with reorganisation turns out to have been too low, it will make the challenge of achieving savings for reinvestment even tougher.

"The health reforms are still at an early stage and key questions have yet to be addressed. It is vital that the Department creates robust accountability structures so that Parliament and the public can properly follow the taxpayers' pound and hold those responsible to account," she added.

The PAC will regularly review the progress of the reforms, especially with reference to the issues highlighted.