NHS productivity is static or falling according to the lastest estimate by national statisitations despite the record sums of money being invested into the health service.

Using a standard national measurement that compares NHS inputs with outputs productivity fell by between 5.6 per cent and 1.3 per cent between 1995 and 2004. Inputs have traditionally measured labour, buildings and equipment and outputs have measured activity in the NHS mainly in hospitals

The Treasury and independent statisticians now say that the traditional measurements are not sophisticated to gauge productvity accurately. As a result the Office for National Statistics [ONS] is working with the Department of Healh on even more comprehensive measurement of health output that takes into account the quality of treatment received and its value to the economy and individuals.

Measuring value for money in the public services is of major importance to everyone, providers and users. As practitoners of productivity improvement IMS members should be able to make a contibution to this issue. Any ideas?

As the NHS steps up its battle to improve value for money, trust chief executives admitted they must increase productivity before they can make the case for extra funding. Pioneering techniques used by Toyota. Tesco, the Royal Navy and the Royal Air Force are being adopted by the NHS to cut out waste and Increase productivity. [ Click on Lean thinking for the NHS]