Annual Report 2014 - Reporting on the Quality and Efficiency Support Team

Part 14: Appendix

Efficiency Savings 2013-14

Planned versus Actual Efficiency Savings

NHS Boards are required to identify planned efficiency savings as part of their Local Delivery Plan (LDP). The achievement of these savings is monitored on a monthly basis. Figure 1 below illustrates the planned and the reported actual efficiency savings achieved by NHSScotland during 2013-14.

Overall the achievement of actual savings has been slightly ahead of those planned throughout the year. As at March 2014 actual savings were 7 per cent over those planned at £275 million (£257 million target).

In the majority of cases the reported savings were in line with, or greater than, those planned per NHS Boards' LDPs.

Savings per Efficiency and Productivity Workstream

The efficiency and productivity workstreams align to the savings categories in NHS Board LDPs and monthly monitoring returns.

Figure 3 below details the proportion of reported savings achieved through each of the workstreams.

• Workstreams associated with service productivity delivered 42 per cent of the savings total amounting to £114 million. There is a significant increase in the proportion of savings delivered as a result of improvements in service productivity (2012-13, 20 per cent of total amounting to £55 million).
• Almost a quarter (22 per cent) of efficiency savings achieved in 2013-14 relate to prescribing, this amounts to £59 million. This is a slight decrease compared to 2012-13 (£66 million, 25 per cent of total savings).
• Workforce workstreams delivered 12 per cent of the savings total (2012-13, 19 per cent of total).
• Procurement, Support Services, and Estates and Facilities each delivered between 6 per cent and 10 per of the savings total. This is broadly in line with the previous year.
• <1% of savings were delivered by Shared Services. In 2014-15 there will be a focus on a 'Once for Scotland' approach.

Recurring versus Non-Recurring Savings per Efficiency and Productivity Workstream

Recurring savings are those which once achieved recur year on year from that date (e.g. savings on staff costs as a result of streamlining processes). Non-recurring savings are those which are one-offs (e.g. receipt from the sale of a fixed asset, such as a building). It is important that savings are recurring to ensure sustainability of the financial position and to reduce the risk of non-achievement of savings targets in future years.

Figure 4 below details the proportion of recurring and non-recurring savings achieved through each of the workstreams.

• £218 million (79 per cent) of savings across all workstreams are recurring; this is in line with 78 per cent recurring savings in 2012-13.
• 95 per cent of prescribing savings are recurring (2012-13, 96 per cent).
• Estates and facilities have the lowest proportion of recurring savings (64 per cent) (with the exception of HR Shared Services which has a small amount of savings in absolute terms).
• The remaining workstreams have achieved recurring savings of between 68 per cent and 90 per cent.

NHS Board and Efficiency and Productivity Leads

Every NHS Board within NHSScotland has an Efficiency and Productivity Executlve Lead who is the primary contact within their Board in relation to efficiency and productivity. The current list is available on our website:

http://www.qihub.scot.nhs.uk/quality-and-efficiency/quality-efficiency-and-value/efficiency-and-productivity-executive-leads-.aspx