How the NHS Can Optimize Health Outcomes in a Time of Financial Constraint
Author(s)
Ben Richardson, Yemi Oviosu, PhD, beena mistry, PhD, Sophie Lee, MSc.
Carnall Farrar, London, United Kingdom.
Carnall Farrar, London, United Kingdom.
OBJECTIVES: The 2024 Darzi Report underscored the urgent need for the NHS to re-examine how the system delivers care, how it uses its resources, and how it can be set on a sustainable path forward. Achieving this will require boosting productivity across the system, using resources more effectively, and investing in prevention to improve health and reduce costs.
METHODS: CF explored how NHS productivity has changed over time and how the health of the population is being addressed. We conducted analyses on 3 key themes: NHS productivity, the unmet needs in chronic conditions, and the return on investment from prevention spending. Given the concentration of funding in the acute sector, we focused explicitly on acute sector impact in these three areas. To make this report as robust as possible, we relied on figures reported by NHS England and submissions to parliament
RESULTS: •Productivity loss amounts to £17 -18 billion since 2018/19. We measured the decline in productivity from its initial drop in 2018/19, finding a reduction of 17-18%, whether measured by weighted activity unit per nurse, doctor or per pound spent. •Optimising treatment may reduce HCRU costs and mortality across cardiovascular-renal-metabolic (CVRM) conditions and dementia, with potential gross savings between £870 million to £4.8 billion. While these opportunities cannot simply be added, applying the average gross opportunity rate of 15 - 29% to the total £34 billion spend on these conditions would be worth £4.7-9.0 billion. Allowing 25-50% reinvestment costs would produce a net opportunity of £3.4-5.0 billion from pure variation and £6.1-9.2 billion based on the implementation of clinical guidelines.
CONCLUSIONS: Realising the potential of £12-18 billion in acute productivity gains, £3.4-5.0 billion from reducing variation in chronic disease management, and £6.1-9.2 billion by addressing care gaps could collectively unlock £15-27 billion in opportunities to improve resource utilisation within the acute care sector.
METHODS: CF explored how NHS productivity has changed over time and how the health of the population is being addressed. We conducted analyses on 3 key themes: NHS productivity, the unmet needs in chronic conditions, and the return on investment from prevention spending. Given the concentration of funding in the acute sector, we focused explicitly on acute sector impact in these three areas. To make this report as robust as possible, we relied on figures reported by NHS England and submissions to parliament
RESULTS: •Productivity loss amounts to £17 -18 billion since 2018/19. We measured the decline in productivity from its initial drop in 2018/19, finding a reduction of 17-18%, whether measured by weighted activity unit per nurse, doctor or per pound spent. •Optimising treatment may reduce HCRU costs and mortality across cardiovascular-renal-metabolic (CVRM) conditions and dementia, with potential gross savings between £870 million to £4.8 billion. While these opportunities cannot simply be added, applying the average gross opportunity rate of 15 - 29% to the total £34 billion spend on these conditions would be worth £4.7-9.0 billion. Allowing 25-50% reinvestment costs would produce a net opportunity of £3.4-5.0 billion from pure variation and £6.1-9.2 billion based on the implementation of clinical guidelines.
CONCLUSIONS: Realising the potential of £12-18 billion in acute productivity gains, £3.4-5.0 billion from reducing variation in chronic disease management, and £6.1-9.2 billion by addressing care gaps could collectively unlock £15-27 billion in opportunities to improve resource utilisation within the acute care sector.
Conference/Value in Health Info
2025-11, ISPOR Europe 2025, Glasgow, Scotland
Value in Health, Volume 28, Issue S2
Code
HSD59
Topic
Epidemiology & Public Health, Health Policy & Regulatory, Health Service Delivery & Process of Care
Disease
No Additional Disease & Conditions/Specialized Treatment Areas