Friday, July 03, 2009

The NHS Financial Warp Drive - Fuelled by CRES


NHS Trusts are not very forthcoming about where and how they generate Cash Release Efficiency Savings (CRES) . We at UserWatch are aware that some of those (CRES) have been accruing as eventual NHS Foundation Trust "surpluses"....

CRES can be generated by several means and not just "demand management" which pans out at rationing patient care . That for sure is one method though .

Other methods are negotiating supplies of drugs more cheaply and another is negotiating other supplies like power more cheaply .

Income can also be generated on attracting patients into a special areas of care and treatments should FT Trusts be good at that .

CRES can be generated by saving the money on Payment By Results tariff's being applied per case and since cases have averaged out costs if a Trusts can come in under that, cash is released as "efficient" savings....

We hope to dig in more on this later as information about specific Trust's financial habits develops .


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