Contents
Is the NHS cost effective?
NHS among developed world’s most efficient health systems, says study The NHS is one of the most cost-effective health systems in the developed world, according to a (pdf) published in the Journal of the Royal Society of Medicine. The “surprising” findings show the saving more lives for each pound spent as a proportion of national wealth than any other country apart from Ireland over 25 years.
Among the 17 countries considered, the United States healthcare system was among the least efficient and effective. Researchers said that this contradicted assertions by the health secretary,, that the NHS needed competition and choice to become more efficient. “The government proposals to change the NHS are largely based on the idea that the NHS is less efficient and effective than other countries, especially the US,” said Professor Colin Pritchard, of Bournemouth University, who analysed a quarter of a century’s data from 1980.
“The results question why we need a big set of health reform proposals, The system works well. Look at the US and you can see where choice and competition gets you. Pretty dismal results.” The study will be a blow for Lansley, who argues that patients should choose between competing hospital services and GPs.
Pritchard’s last academic paper, which argued that surgeons were being distracted from frontline work by “unfunded” targets in the NHS, was used by Lansley to justify government reforms. Using the latest data from the World Organisation, the paper shows that although Labour’s tax-and-spend strategy for the NHS saw health spending rise to a record 9.3% of GDP, this was less than Germany with 10.7% or the US with 15%.
Not only was the UK cheaper, says the paper, it saved more lives. The NHS reduced the number of adult deaths a million of the population by 3,951 a year – far better than the nearest comparable European countries. France managed 2,779 lives a year and Germany 2,395.
This means, the paper says, that dramatic NHS improvements have led to a situation where that there are now 162,000 fewer deaths every year compared with 1980.The paper says the US suffers from a “relatively huge bureaucratic burden needed to monitor the costs, behaviour and risks of customers, as well as the immense legal costs required to control payment”.Looking at elderly patients, the difference was even more stark with the best performers – Ireland, the UK and New Zealand – having health systems that were three times more effective and efficient than the worst – Switzerland, Portugal and the US.
Pritchard said that only Ireland’s position today would be significantly different – because its economy has shrunk. “I think Ireland would have slipped back today.” The paper also takes Lansley to task over his claims that “if UK cancer survival rates were at the European average, we know we would save 5,000 extra lives a year.” It says: “In terms of actual cancer mortality rates, rather than the more ambiguous ‘survival’ rates, the UK had better results,
Which appears to be linked to major additional funds going to cancer care.” Pritchard points out that even Adam Smith, the Scottish economist and father of market-based ideology, thought the state was “probably better” at health and education. “It’s naive to think that Lansley does not want more privatised health service.
But there’s no evidence why it be better. There’s a lot to suggest it would be worse.” A Department of Health spokesman said that the paper was “mistaken to think that competition is an end in itself, or will necessarily increase the independent sector’s role in the NHS”.
Is NHS free for all UK citizens?
Hospital services – Hospital treatment is free to people who are “ordinarily resident” in the UK. To be considered ordinarily resident and entitled to free hospital treatment, you must be living in the UK on a lawful and properly settled basis for the time being.
- You may be asked to prove this.
- You cannot be considered ordinarily resident in the UK unless you have indefinite leave to remain or status under the EU Settlement Scheme.
- If you’re a visitor from the EU, even if you’re a former UK resident, you can use your EHIC, PRC or S2 when visiting the UK.
- If you cannot provide these documents, you may be charged for your care.
If you’re a visitor from Norway, you can get medically necessary healthcare using your Norwegian passport. If you’re a visitor from Norway, Iceland, Liechtenstein or Switzerland whose visit to the UK began on or before 31 December 2020, you may continue to use your EHIC or PRC in the UK for the duration of your visit.
- You also may complete planned treatment using your S2, as long as authorisation for this was requested from the relevant health authority before 31 December 2020.
- If you’re visiting from Iceland, Liechtenstein or Switzerland you may be charged for NHS healthcare.
- You should check with the relevant health authority where you live before travelling to the UK.
If you’re visiting England for more than 6 months, you’ll need to pay the immigration health surcharge, unless you’re exempt from paying it. The full amount will be paid upfront for the duration of your visa. Find out about accessing healthcare services if you’re moving to England from outside the European Economic Area (EEA) Find out about paying for for UK healthcare as part of your immigration application on GOV.UK If you’ve paid the surcharge or are exempt from paying it, and your visa allows you to be here for more than 6 months, you’ll be entitled to free NHS hospital treatment in England on a similar basis to an ordinarily resident person, with the exception of NHS-funded assisted conception services.
- Your entitlement will apply from the date your visa is granted until it expires.
- You’ll have to pay some charges, such as prescription or dental charges.
- If you’re visiting England for less than 6 months, you should ensure you’re covered for healthcare through personal medical insurance during your visit, even if you’re a former UK resident.
If you’re not ordinarily resident in the UK and you need to pay for NHS hospital treatment, you’ll be charged at 150% of the national NHS rate.
How is money saved in the NHS?
Analysis of productivity in three areas – Single-aspect measures of productivity can be used to paint a more detailed picture of improvements in different areas of the NHS. We illustrate this with an analysis of three indicators where the NHS has made unambiguous improvements in productivity over a number of years: generic prescribing, length of stay and day-case surgery.
- In each of these areas, the NHS has made significant and sustained gains in productivity, allowing more (and better) care to be delivered within the same budget.
- For example, increased levels of generic prescribing from 1976 to 2013 (from 20 to 84 per cent) has in effect saved the NHS around £7.1 billion and allowed 490 million more items to be prescribed without an increase in spending.
Put simply, the NHS is now getting much more value for every pound it spends on prescribing. Another way of looking at the impact of these gains is by estimating what would have happened if the NHS had failed to make improvements in each of these areas.
- A particularly striking example is the progress made in switching inpatient activity to day-case admissions.
- If the proportion of patients treated as day cases had remained unchanged from 1998/9 to 2013/14 (all other things being equal), NHS spending in 2013/14 would have paid for 1.3 million fewer elective patient episodes than it was actually able to do.
Our analysis also suggests that there is still potential to make further improvements in these areas in the future. A good example is average length of stay in hospitals. While lengths of stay in England have fallen from 10.5 days in 1974 to 4 days in 2013/14, comparisons with other countries and data on variations in performance between hospitals in the NHS suggest that there are still gains to be made.
Is the NHS getting better?
Journal List BMJ v.327(7426); 2003 Nov 29 PMC286234
As a library, NLM provides access to scientific literature. Inclusion in an NLM database does not imply endorsement of, or agreement with, the contents by NLM or the National Institutes of Health. Learn more about our disclaimer. BMJ.2003 Nov 29; 327(7426): 1239–1241.
We need better data to answer the question The NHS is a shambles, and you are too much of a coward to say so. This was the gist of an email I received from an NHS consultant a few weeks ago. I answered—weakly in his eyes—that I couldn’t be sure that the NHS was collapsing. I met many people who agreed with him but also many who thought otherwise.
I didn’t see clear evidence. Yet whether the NHS is improving may be the most important political question in Britain. The government, which has increased NHS expenditure by billions and launched into a 10 year modernisation plan, insists that it is improving.
- The opposition alleges that the money is being wasted.
- The people want a better health service, and a billion pound investment that came to nothing would be a national tragedy.
- So what is the answer? The main conclusion of an extensive, independent review funded by the Nuffield Trust and published this week is that we don’t have the data to answer the question reliably.1 This in itself is an indictment—particularly when the NHS is awash with bodies auditing and inspecting it.
The review—which is of quality in the NHS in England not the other three home countries—has been conducted by Sheila Leatherman, an American professor with appointments in both the United States and the United Kingdom, and Kim Sutherland from the Judge Institute in Cambridge.
They describe the review as a mid-term evaluation of the Labour government’s 10 year agenda described in The New NHS—Modern, Dependable: a National Framework for Assessing Performance, published in 1997.2 That document introduced the National Institute for Clinical Excellence (NICE), the Commission for Health Improvement (CHI), national service frameworks, primary care groups, and the concept of clinical governance.
In January 2000—under great political pressure—the prime minister announced that expenditure on health care would be brought up to the average in the European Union, and in July the NHS plan was launched, which among other initiatives announced the creation of the Modernisation Agency.3 All of these policy developments have come against the backcloth of the inquiries into the excess deaths in children’s heart surgery in Bristol and general practitioner Harold Shipman murdering dozens of his patients.
In addition, the General Medical Council has been reformed, and revalidation is being introduced for all doctors. Is this more than an uncoordinated orgy of reform driven by panic? Leatherman and Sutherland think so. They describe it as “the most ambitious, comprehensive and intentionally funded national initiative to improve health care quality in the world.” This bold statement stands up to close examination.
Even the most shameless politician in Britain could not any longer boast that the country has the world’s best healthcare system—but it seems to have the most ambitious programme of reform. It is impossible to reform healthcare systems with single initiatives.
Multifaceted strategies are needed, and some parts of the programmes will fail. Leatherman and Sutherland think that the reforms lack coherence, and so far there has been much greater impact at national and regional levels than at institutional or individual levels. And it is the individual level that matters.
Elegant and imaginative reforms at higher levels are worthless if they do not translate into an improved experience for individual patients and a public perception that things are better.
What percentage of UK tax goes to NHS?
How much does the NHS cost? – It is actually very hard to say, as it is surprisingly difficult to define the NHS. For example, does it include all the 4 nations, as they have different NHSs. Does it include healthcare for the armed services? Does it include arms length bodies like NICE, HEE, CQC and UKHSA <span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">United Kingdom Health Security Agency: </span></span><span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">Successor to Public Health England</span></span><span class="EOP SCXW120990847 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/ukhsa” data-gt-translate-attributes=””>UKHSA ? What about public Health <span data-contrast="auto">Defined by WHO as ‘a state of complete physical, mental and social well-being</span><span data-ccp-props=" "> </span><span data-contrast="auto">and not merely absence of disease or infirmity'</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/health” data-gt-translate-attributes=””>health ( UKHSA <span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">United Kingdom Health Security Agency: </span></span><span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">Successor to Public Health England</span></span><span class="EOP SCXW120990847 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/ukhsa” data-gt-translate-attributes=””>UKHSA )? It is not clear. Either way, the NHS is not cheap, and the NHS is not free. Total UK central government funding for Health <span data-contrast="auto">Defined by WHO as ‘a state of complete physical, mental and social well-being</span><span data-ccp-props=" "> </span><span data-contrast="auto">and not merely absence of disease or infirmity'</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/health” data-gt-translate-attributes=””>health in the UK in 2022/23 (including spending by central government departments and devolved administrations) is about £180 billion. This is about 10% of total GDP (Gross Domestic Product), i.e. about 10% of your taxes. This is in line with other developed countries. This compares to about 35% on ‘welfare’ (including benefits and pensions), 4% on justice (police, courts, and prisons), 2% of GDP spent on defence. NHS England runs the NHS in England for the DHSC <b><span data-contrast="auto">Department of Health and Social Care: </span></b><span data-contrast="auto">Government department leading health</span><span data-ccp-props=" "> </span><span data-contrast="auto">and social care.</span> ” href=”https://www.myhsn.co.uk/glossary/dhsc” data-gt-translate-attributes=””>DHSC, It receives the largest amount (£113 billion), as it has the biggest population. £108 billion of this budget was allocated to the 42 Integrated Care <span data-contrast="auto">Bringing together delivery, management and organisation of services</span><span data-ccp-props=" "> </span><span data-contrast="auto">related to clinical care, rehabilitation and health promotion</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/integrated-care” data-gt-translate-attributes=””>Integrated Care Systems (which took over from CCGs in April 2022). Specialised Commissioning <span class="TextRun SCXW125419014 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW125419014 BCX0">Process of planning, buying and monitoring health services</span></span><span class="EOP SCXW125419014 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/commissioning” data-gt-translate-attributes=””>commissioning NHS England retains around a quarter of the budget for other responsibilities including about £30 billion in 2022/23, mainly for Specialised Commissioning <span class="TextRun SCXW125419014 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW125419014 BCX0">Process of planning, buying and monitoring health services</span></span><span class="EOP SCXW125419014 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/commissioning” data-gt-translate-attributes=””>Commissioning ; which is a national and regional method of funding the treatment of rare and expensive diseases. Examples include dialysis/transplantation, and cardiothoracic surgery. Pre COVID-19 Pandemic Numerous outbreaks of a particular disease all over the world at the same time. It relates to the way a disease spreads, not the severity of the disease itself. The World Health Organisation decides when a series of epidemics are widespread enough to be called to be a pandemic ” href=”https://www.myhsn.co.uk/glossary/pandemic-2″ data-gt-translate-attributes=””>pandemic, Specialised Commissioning <span class="TextRun SCXW125419014 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW125419014 BCX0">Process of planning, buying and monitoring health services</span></span><span class="EOP SCXW125419014 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/commissioning” data-gt-translate-attributes=””>Commissioning (part of ‘direct Commissioning <span class="TextRun SCXW125419014 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW125419014 BCX0">Process of planning, buying and monitoring health services</span></span><span class="EOP SCXW125419014 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/commissioning” data-gt-translate-attributes=””>commissioning ‘ in the pie chart below) was one of the fastest growing elements of the NHS budget – increasing by an average of over 7% per year. This is a concern as it means in the future, there will be less funds for ‘ordinary’ healthcare like GPs, local hospitals and Mental Health <span class="TextRun BCX0 SCXW177645384" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW177645384">Person’s psychological and emotional well-being</span></span> ” href=”https://www.myhsn.co.uk/glossary/mental-health” data-gt-translate-attributes=””>mental health,
NHS England funding allocation 2022/23 Other funding The rest funds other things like prisons, armed services, and itself. It also funds ‘arms lengths bodies’ (linked to the NHS) like United Kingdom Health Security Agency <span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">Successor to Public Health England</span></span><span class="EOP SCXW120990847 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/united-kingdom-health-security-agency” data-gt-translate-attributes=””>United Kingdom Health Security Agency ( UKHSA <span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">United Kingdom Health Security Agency: </span></span><span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">Successor to Public Health England</span></span><span class="EOP SCXW120990847 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/ukhsa” data-gt-translate-attributes=””>UKHSA ; public Health <span data-contrast="auto">Defined by WHO as ‘a state of complete physical, mental and social well-being</span><span data-ccp-props=" "> </span><span data-contrast="auto">and not merely absence of disease or infirmity'</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/health” data-gt-translate-attributes=””>health ), Health <span data-contrast="auto">Defined by WHO as ‘a state of complete physical, mental and social well-being</span><span data-ccp-props=" "> </span><span data-contrast="auto">and not merely absence of disease or infirmity'</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/health” data-gt-translate-attributes=””>Health Education England (HEE), National Institute of Health <span data-contrast="auto">Defined by WHO as ‘a state of complete physical, mental and social well-being</span><span data-ccp-props=" "> </span><span data-contrast="auto">and not merely absence of disease or infirmity'</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/health” data-gt-translate-attributes=””>Health and Special Care Excellence (NICE) and Care Quality <span class="TextRun SCXW143129372 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW143129372 BCX0">Standard of something in healthcare as measured against other similar things.</span></span> ” href=”https://www.myhsn.co.uk/glossary/quality” data-gt-translate-attributes=””>Quality Commission (CQC). These are national institutions that advise government and the NHS but are not formally part of it. This is because it is felt they need a degree of independence so they can say what they like. The largest arms lengths bodies, in terms of cost, are UKHSA <span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">United Kingdom Health Security Agency: </span></span><span class="TextRun SCXW120990847 BCX0" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW120990847 BCX0">Successor to Public Health England</span></span><span class="EOP SCXW120990847 BCX0" data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/ukhsa” data-gt-translate-attributes=””>UKHSA, and Health <span data-contrast="auto">Defined by WHO as ‘a state of complete physical, mental and social well-being</span><span data-ccp-props=" "> </span><span data-contrast="auto">and not merely absence of disease or infirmity'</span><span data-ccp-props=" "> </span> ” href=”https://www.myhsn.co.uk/glossary/health” data-gt-translate-attributes=””>Health Education England – receiving £4.0 and £4.4 billion respectively. What is the cost of the NHS per person in the UK? In 2022/23, it is £2700 per person per year (£180 billion divided by 67 million population). Summary We have explained how much does the NHS cost. We hope it is clearer now. Other resources MyHSN has a related article How is the NHS funded This is a good article from the BMA, especially comparing current funding to previous years. This video explains more about the money flow.