Mental health problems are widespread; 16 per cent of people at any one time in the UK have a so-called common mental disorder. £7.2 billion represents the largest single element of programme budget spend in the National Health Service (NHS), amounting to 12.2 per cent of total NHS expenditure. In recent years, the government has made mental health service reform a priority.
Mental health trusts (MHT) perform better than trusts in the acute sector in terms of financial standing, although there are still areas of financial management in which need improving. This report considers how they currently function, as well as methods of improvement and best practice that they need to employ, covering the following areas:
- investment and spending in mental health
- cost structures, pressures and risks
- strengthening financial management arrangements
- conclusions
It highlights the financial issues MHT face now and in the future. It makes practical recommendations for strengthening financial management, supported by examples of notable practice.