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Hospital consultancy cutbacks save £42m

Hospital consultancy cutbacks save £42m

4 January 2016

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The crackdown on the use of management consultants in hospitals has saved £42 million so far, NHS Improvement figures revealed.

In quarter two of 2014, between July and September, £145 million was spent on the consultants, who typically examine the efficiency, profits and structure of the organisation, then offer suggestions on methods of improvement.

The crackdown on the use of management consultants in hospitals has saved £42 million so far, NHS Improvement figures revealed.

In quarter two of 2014, between July and September, £145 million was spent on the consultants, who typically examine the efficiency, profits and structure of the organisation, then offer suggestions on methods of improvement.

However, in the same period in 2015, £103 million was spent on management consultancy.

NHS Improvement believes these measures will save up to £160 million by the end of the year, and remove £1 billion from the agency-staffing bill by 2018, once they begin to take greater effect.

In response, health secretary Jeremy Hunt said: “Our plans to clamp down on management consultants and rip-off staffing agencies are bearing fruit. Patients will see the reward with savings being reinvested in frontline patient care.”

He said that the figures prove that it’s possible to “make savings and improve patient care at the same time”.

The clampdown, part of a wider package of spending controls announced in June aimed at supporting hospitals to improve hospital finances, also targeted rip off staffing agencies including limiting the amount hospitals could pay for agency staff. 

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