Since the publication of this briefing, new analysis has shown different results for unit costs. Originally we found that unit costs in acute and specialist NHS hospitals fell in 2007/08. This was based on an analysis of reference costs. But new analysis shows units costs rose by over 8 per cent. This latest analysis has now taken full account of the way in which different services and procedures have been included in reference costs over the years 2005/06 to 2007/08.
This increase in unit costs (page 7) was largely caused by the reference costs showing a significant fall in the number of patients admitted as emergencies. However, such a fall is inconsistent with the data for payment by results (PbR). This, and other, data from the service shows continued growth in emergency activity in 2007/08 - and this is more consistent with actual experience reported by the NHS.
Analysis of the PbR data suggests that for services covered by the tariff, unit costs fell slightly after allowing for general inflation in each of the three years 2006/07 to 2008/09.
The Commission has done some pilot work for the Department of Health, auditing the accuracy of reference costs data, and will submit its report to the Department soon.
This analytical briefing looks at how NHS money has been spent, whether primary care trusts have been successful in keeping more patients out of hospital, and whether hospitals have become more efficient.
The briefing also includes a look at the first quarter of 2009/10.