Tuesday, July 12, 2005

Self interest in the NHS

What incentive is there for the least efficient day surgeries to improve given the existing NHS funding structure and tolerance of inefficiency? An extra 74,000 people could be treated each year if NHS day surgeries were used more than the current average of 16 hours per week.

Rather than using existing resources efficiently and maximising throughput of a limited resource, the NHS has a simpler yet more expensive solution, build more under-utilised surgeries funded by the deep pockets of taxpayers.

It would be far better for the NHS and the country if self interest was encouraged by ensuring taxpayer's money followed patients but set at a rate per procedure that forced inefficient surgeries either to improve or close. Efficient surgeries would be rewarded with additional funding whilst I would like their high performing staff to be rewarded with more pay rather than pegged at national pay rates.

Self interest is a remarkable motivator.

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