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SEPTEMBER 21

Guest editor: Graham Cookson  |  CEO

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I hope our first OHE Bulletin finds you well and doesn’t end up in your recycling bin, even though our first issue is rather fittingly all about waste.

 

Efficiency isn’t sexy, which is why I have decided to shine the spotlight on it for our first Bulletin. It’s not a new wonder drug that can cure cancer, or a radical policy for health insurance reform. It is also hugely challenging to measure, study and improve in the health service.

But the power of efficiency is incredible, and as the health system faces unprecedented and growing demand yet is given finite resources, efficiency is the key that can unlock significant patient benefit. If we can free up resources by improving the efficiency with which we deliver care, these resources could be redeployed to deliver more health care.

 

Data reported by the Health Foundation showed that four million fewer people completed elective treatment in 2020 compared with 2019 (down from 16 million to 12 million).

 

As well as fewer patients being treated, 2020 saw six million fewer people referred into consultant-led elective care than in 2019 – so-called 'missing patients' – and they remain the biggest unknown in planning to address the backlog of unmet need created by the pandemic.

 

The waiting list has now reached the highest level since comparable records began and could still grow substantially as these 'missing patients' are added. The Health Secretary recently suggested that NHS waiting lists in England could grow to 13 million people, or one in five of us.

 

Given that, in the short term at least, many resources such as staff and hospital beds are fixed innovation and efficiency will be critical to tackling the backlog. In the case of the former, pharmaceutical interventions that are less workforce intensive (like Direct Oral Anticoagulants) or which could prevent or delay hospital admissions (like Pneumococcal conjugate vaccines) are an examples. Preventing wasteful expenditure, improving labour productivity, and increasing capacity will also be key.

 

Our own contribution is a Health Foundation funded study of primary care efficiency, and our first scientific publication has just been published. 

MY TOP READ OF THE MONTH

"In the early years of the National Health Service the control of the infections, particularly Tuberculosis, released many hospital beds and facilities for other uses. Similarly, in recent years it has been possible to reduce substantially the number of hospital beds occupied by the mentally ill."

Efficiency in the Hospital Service  | July 1967

Whilst clearly the data in OHE’s 1967 report on Efficiency in the Hospital Service are ‘dated’ I found it interesting to see how today’s health service is facing many of the same issues including how much to pay staff (wages increased 215% 1948-1966), how to afford cutting-edge medicines, and how to improve efficiency to address the ever-growing demand for healthcare.

 

As the quote reveals, the NHS also faced a similar challenge as today. Getting TB under 

control freed up critical resources such as beds and staff to tackle other health problems. Today, the NHS needs Coronavirus to be controlled so that the focus can return to elective care and other acute needs.

 

The report also questioned the dearth of efficiency studies and raised awareness of the challenges of doing empirical work in the area of efficiency – how do you measure it? Interestingly, whilst there many more studies on efficiency it remains a challenge to measure efficiency in health care as OHE’s latest research demonstrates.

Read

NEW OHE LITERATURE

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Approaches to Measure Efficiency in Primary Care: A Systematic Literature Review

OHE’s latest journal article in Applied Health Economic Health Policy addresses methodological challenges in efficiency studies by demonstrating that existing approaches to measure the impact on health and the multiple dimensions of output are insufficient, and presents avenues for future research on the topic.

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Cheap and Dirty: The Effect of Contracting Out Cleaning on Efficiency and Effectiveness

Previous OHE research demonstrates that cost-efficiency is a problematic goal – cheap is not always best. By investigating the contracting out of hospital cleaning services, the article in Public Administration Review, finds that private providers were cheaper but also dirtier than their in-house counterparts.

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Allocating Public Spending Efficiently: Is There a Need for a Better Mechanism 

A recent journal article by OHE proposes a new approach for comparing public spending allocations across government departments to ensure efficiency. Another paper by the same authors highlights evidence that current spending is probably not allocatively efficient and raises the question of whether budgets should be reallocated.

NEWS HIGHLIGHTS

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219 Million Surplus COVID  Vaccines

BMJ reports the UK may have 219 million surplus doses of Coronavirus vaccines this year. Wasting them would be an international tragedy, but they report technical challenges to overcome as well as caution around the “shelf life” of mRNA vaccines. 

US Trailing in Health Care System Comparison

The Commonwealth Fund’s latest report, compares the performance of health care systems of 11 high-income countries across five domains — access to care, care process, administrative efficiency, equity, and health care outcomes. The United States ranks last overall, despite spending far more of its gross domestic product on health care, whilst the UK is mid-table at fourth.

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New US Law Refunding Medicare?

In a bizarre piece of US law making, the Infrastructure Bill passing through the US legislature also contains a provision that would require pharmaceutical manufacturers to refund Medicare for drug waste – medicine discarded by doctors. The US government claims this cost Medicare $752 million in 2019. 

UPCOMING EVENTS

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Adaptive Pathways: Generating Evidence of Value

30 September  |  This Masterclass addresses strategic issues adaptive pathways, illuminating when they are optimal for innovative therapies, as well as bringing together multiple perspectives on iterative pathways.

£375

Early Bird discount valid until 07.09.2021

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The Role of Unmet Need in Pharmaceutical Innovation

20 October |  In this free webinar will be discussing the different roles of unmet need along the development pathway and how its application might be improved to promote development in areas of genuine health need.

FREE

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Innovation for Small Populations:What Should We Pay for?

9 December  |  There remains significant unmet need with only 5% of the more than 7,000 rare diseases having treatments available today. We will tackle this issue and discuss solutions for moving forward in the area of orphan and ultra-orphan diseases.

£375

Early Bird discount valid until 09.11.2021

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