A government review has found better efficiency could save the NHS £400m a year.
The report by Lord Carter reveals tax-payers’ money is being wasted unnecessarily on excessive staff holidays, poor treatment choices and expensive medical items.
It comes after the Conservative party’s pledge to spend an additional £8 billion a year on managing the ageing population.
£17 million on expensive hip replacements
The Labour peer spent last year studying 22 leading hospitals to see how the NHS spends its funds.
His recently published interim report has revealed numerous examples of inefficient practice, including one hospital who was losing £10,000 every month due to staff claiming too much annual leave.
Procuring the best value-for-money supplies and medicines was also an issue, with huge variations in the amount hospitals paid for the most basic of items.
One hospital spent £2.39 on a pair of latex gloves, as opposed to another which spent £5.44.
Needlessly expensive hip replacements alone are said to be costing the NHS £17 million every year.
Hips used in the more costly procedures do not last as long as the cheaper versions of the artificial joint. Consequently greater numbers of patient need follow-up care and repeat procedures in the future.
“Paying over the odds”
Now the report has been published, each hospital will be given money-saving targets and will be publically rated according to how efficiently it spends money.
A template for a ‘model hospital’ will also be published in September.
If Lord Carter’s recommendations are followed, it is thought the NHS could save £400m every year, while more cost-effective procurement could save £1 billion by 2020.
Heath Secretary Jeremy Hunt said he wanted hospitals to avoid “paying over the odd for basic items”.
He added: “The NHS has huge purchasing power as the world’s biggest buyer of healthcare products, so we should be driving for the best-value deals every time.”
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