NHS Can Save £5bn By Cutting Waste - Report

The NHS could save £5bn a year by better managing its staff and clamping down on hospitals which are paying too much for medicines and equipment, according to a new report.

A review by Lord Carter has uncovered several instances where NHS trusts are wasting cash which could be reinvested into frontline care for patients.

His findings, described as "staggering" by Health Secretary Jeremy Hunt, include:

:: A hospital which was giving soluble steroids, at a cost of £1.50 per tablet, to all of their patients – even though the solid alternative costs just 2p per tablet. It is now saving £40,000 per year by only giving the soluble version to patients who have difficulty swallowing pills.

:: Another hospital which could save £750,000 each year by offering flexible working to staff, and handling rosters, sickness and annual leave more efficiently.

:: Massive inconsistencies in the prices paid for supplies. One hospital was paying £12 for a box of syringes, while another was paying just £4 per box. In another case, a box of toilet roll cost a clinic £66 – even though it could be bought for £30 elsewhere.

:: Hip operations costing more than double what they should. Some patients could have been given hip replacements which were cheaper and lasted longer, saving the NHS up to £17m annually.

Lord Carter's report, based on the spending habits of 22 major hospitals, concluded that making seemingly minor changes to purchasing decisions within the NHS could lead to huge savings of up to £5bn a year by 2020.

Rob Webster, the chief executive of the NHS Confederation, said: "The potential savings need to be tested and developed with the wider NHS, so that final savings targets due to be handed to the NHS from September are owned by the whole service."