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NHS: Cost Effectiveness

House of Lords written question – answered at on 30 October 2014.

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Photo of Lord Sharkey Lord Sharkey Liberal Democrat

To ask Her Majesty’s Government whether the “Nicholson Challenge” still operates within the National Health Service; if so, what efficiency savings have been identified to date; and, if not, why not.

Photo of Earl Howe Earl Howe The Parliamentary Under-Secretary of State for Health

The 2010 Spending Review protected health funding in real terms. However, in order to continue to meet rising demands while improving services, it was estimated that up to £20 billion of efficiency savings would be required over the four years from 2011-12 to 2014-15.

The National Health Service response to this challenge was organised through the Quality, Innovation, Productivity and Prevention (QIPP) initiative, also known colloquially as the ‘Nicholson challenge’ after Sir David Nicholson, who was Chief Executive of the NHS at the time that QIPP originated.

The NHS is on track to deliver up to £20 billion efficiency savings, having reported around £15 billion of efficiencies in the first three years, all of which will be reinvested into frontline care.

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