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ALB review & Regulating Healthcare Providers
In the White Paper ‘Equity and Excellence: Liberating the NHS', the Government set out that all NHS trusts will become foundation trusts by 2013. The consultation published today puts forward proposals to free up foundation trusts to innovate for improved outcomes and services by:
- removing the statutory private income cap to give trusts opportunities to expand the services they offer to patients - but ensuring that they remain focussed on providing NHS services;
- removing statutory borrowing limits that are not imposed on voluntary or private providers;
- making it easier for a foundation trust to merge or take over another trust; and
- giving more flexibility to foundation trusts to allow greater staff and patient involvement - with the possibility of some smaller organisations being led only by employees.
Monitor will become the economic regulator for the NHS, sitting alongside the Care Quality Commission (CQC) who will continue to regulate quality. It will be responsible for:
- licensing providers of NHS services in an integrated and streamlined registration and licensing regime with the CQC;
- setting tariff prices for NHS services;
- promoting competition so that the NHS gives patients the best possible services and outcomes, and ensuring a level playing field for providers; and
- supporting commissioners in ensuring that services for patients are maintained when providers fail.
Health Secretary Andrew Lansley said:
‘In order to truly improve health outcomes and the service the NHS gives to patients, it must be free from the shackles of central control. All NHS trusts will become foundation trusts and they will have greater freedom so that they can concentrate on being more responsive to patients.
‘We will remove the statutory borrowing limit and the ill thought through private income cap from foundation trusts - this will give the NHS opportunities to expand the services it offers to patients, with all profits reinvested in patient care.
‘Competition and patient choice together will improve services, stimulate innovation and increase productivity. In its new expanded role, Monitor will ensure a level playing field that rewards the best and most efficient providers that continuously improve services for the people they serve - the patients.'
Download the consultation document
Review of Arm's Length Bodies
Bureaucracy will be cut and the functions of several organisations will be streamlined, following a review of arm's length bodies (ALBs), published by Health Secretary Andrew Lansley today. In total, the changes outlined in today's report will reduce the number of health ALBs from eighteen to between eight and ten; they are expected to deliver savings of over £180m by 2014/15.
In line with the wider reforms set out in the White Paper, Equity and Excellence: Liberating the NHS, the Department of Health's ALB sector will be transformed to cut cost and remove duplication and burdens on the NHS.
The review has assessed whether the work of each of the Department of Health's 18 Arm's Length Bodies' remains essential nationally. It also looked at whether work is being duplicated or could be better carried out by a different body.
Subject to Parliamentary approval, organisations which are no longer needed will be removed from the sector, with essential work moved to other bodies. This process will increase the ability of the organisations to do their important work in the most efficient way. It is also part of the cross-Government strategy to increase accountability and transparency, and to reduce the number and cost of quangos.
Health Secretary Andrew Lansley said:
‘In order to secure every possible means to promote greater value for money and efficiency, we have acted decisively to ensure that our ALB sector remains fit for purpose and affordable.
‘Over the years the sector has grown to the point where overlap between organisations and duplication of effort have produced a needless bureaucratic web. By making sure that the right functions are being carried out at the appropriate level, we will free up significant savings to support front-line NHS services.
‘I know that the uncertainty created by this review has been difficult for staff. The constructive support of the Chairs and Chief Executives of all the organisations has been invaluable throughout this process. We will be supporting them to carry on their essential work during and beyond the period of transition.'
In line with the efficiency savings being made across the health sector, remaining ALBs will be required to deliver their functions effectively and efficiently, taking full advantage of commercial opportunities.
The Department will work with each organisation affected by the changes over the next few months to help them through the transition process. The form of this work will vary according to the nature and scale of the change for each organisation.
Download the report detailing the proposed changes
Posted 26 July 2010