NHS Recommends Further Cost Cutting Measures

Acting head of the NHS, Sir Ian Carruthers, has proposed cost cutting measures to reduce the estimated £750 million NHS deficit.

He proposes to unveil his plan at a No 10 seminar to the Prime Minister Tony Blair. Sir Ian believes the £10.3 billion spent every year on drugs and the £1 billion on temporary staff need to be reduced. Fears that patients would not be given expensive treatments from which they could benefit have arisen.

NHS had been undertaking several staff cutting moves over the last few months. A study, due to be released, has predicted that with the emerging reforms staff has been expected to fall by at least 100,000.

The study has called for a review of training plans for doctors because of the predicted medical unemployment.

According to the Reform team, led by Nick Bosanquet, Professor of Health Policy at Imperial College, London the total NHS staff had risen to 1.33 million by 2004showing an increase of 45,000 a year since 1999. .

The report had suggested that it the costs of the expansion were the reason why the health service was being driven into deficit, the.

With the government’s reform agenda widespread effects were expected across the NHS. The reforms include payment by results, patient choice and the spread of foundation hospitals. There would also probably be an end to centralized contract negotiations, which was a key feature of recent NHS history.

Professor Bosanquet has opined that these reforms would benefit staff as well as patients although he expressed concern about job prospects for young doctors.

With the funding situation only likely to worsen in the next couple of years medical graduates would face more difficulty in getting employment. The graduate numbers would only continue to outweigh retirees massively and NHS financial situation being what it is will be creating fewer job posts and more staff reductions.