This story was first published in digitalhealth.net
NHS IT savings require £8 billion investment
The McKinsey report, which is dated April 2014, claims that the background to its work is the NHS’ need to close the gap between essentially flat fund funding and rising costs and demand that could reach £30 billion by 2020-21.
Through the ‘Five Year Forward View’, NHS England has argued that £22 billion could be found through investment in prevention and new ways of working. The report contends that savings of between £3.2 and £3.9 billion can be found in the acute sector by investing in electronic health records and in systems to improve quality.
Further savings could be found in productivity improvements resulting from investment in community, mental health and primary care services, integrated working, and digital channels for patient access and monitoring.
The report believes that the NHS will need to provide investment of £5 billion to £5.2 billion to secure the savings, and further estimates that it would need to spend £2.3 billion to £3 billion on training, adoption and running costs. This takes the total bill to £7.3 billion to £8.2 billion.
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