Nigel Hawkes, Health Editor
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The money poured into the NHS has failed to produce a more efficient service, or to reduce unhealthy lifestyles.
As a result even more cash will be needed in the future, says a new review by Sir Derek Wanless.
It was published yesterday, five years after his review for the Treasury paved the way for the extra £43.2 billion that the Government has since spent on the NHS.
Sir Derek, a former chief executive of NatWest bank, sees some improvements in the service, but also identifies a range of failings, including mismanaged structural changes; generous pay deals that failed to produce an obvious return; and a neglect of public health.

He said at the publication of his report that the extra resources had undoubtedly improved patient care over the past five years. “But what is equally clear from this review is that we are not on course to deliver the sustainable and world-class healthcare system, and ultimately the healthier nation, that we all desire,” he said.
Sir Derek would have liked the Government to have commissioned the review, but it showed no enthusiasm for doing so. The King’s Fund stepped in, enabling him to produce this report.
He states that more money will be needed over the next two decades unless steps are taken to deal with pressing concerns. That could undermine the current widespread political support for the NHS “and raise questions about its long-term future”, he says.
Of the more than £43 billion extra that has been spent, pay and price inflation have accounted for £18.9 billion, he concludes. New contracts for consultants, GPs and other staff have been introduced, but “there is very little robust evidence so far to demonstrate significant benefits arising from the new pay deals”. Staff numbers have risen far above the targets set in the NHS Plan of 2000, with targets for consultants exceeded by 16 per cent, for GPs by 166 per cent, for nurses by 272 per cent, and for therapists by 102 per cent. The biggest increase in NHS activity has been in accident and emergency departments, where attendances have grown by more than a third since 2002-03. This is hard to explain, but is probably caused by changes in behaviour, shorter waiting times and changes in GPs’ out-of-hours arrangements, the report says.
Public health budgets, aimed at tackling issues such as obesity and smoking, had been raided to bridge financial problems in the NHS, he said. It was impossible to track trends in public health spending or health promotion in the past five years because no official figures were kept. Sir Derek said: “It is also indicative of the relatively low priority given to public health that, while nonpublic health medical staff numbers have increased by nearly 60 per cent since 1997, the number of public health consultants and registrars has gone down overall.”
Sir Derek said at the publication of the report that there were “lots of positives” in his study. These included reduced waiting times, the use of less expensive statins and extra staff. He said that the framework introduced by the Government should remain in place for the next few years to minimise further disruption.
He said in his report, however, that the restructuring had been expensive and had taken managers’ eyes off the priority of running the service.
Alan Johnson, the Health Secretary, will call today for direct intervention to encourage healthier lifestyles after the report’s warning of spiralling obesity levels. The future of the NHS depends on encouraging people to take care of themselves, he will tell members of the New Health Network.
“Government simply cannot afford to be the passive observers of unhealthy lifestyles, only intervening when chronic diseases such as diabetes, heart disease or lung cancer are already well established,” he will argue. “Public health issues must be elevated to the top of the national agenda by a Department for Health which takes an even more active role in encouraging healthy lifestyles.”
Norman Lamb, the Liberal Democrat health spokesman, said: “This report is a damning critique of the Government’s failure to get value for money out of all the extra investment in the NHS. Ministers cannot ignore these recommendations as they did with last year’s report by Sir Derek into social care.”
Andrew Lansley, the Shadow Health Secretary, said: “Even Gordon Brown’s own adviser thinks he has mismanaged the NHS. Labour have invested lots and achieved too little. Gordon Brown is obsessed with pursuing top-down reorganisation instead of delivering genuine reform, which gives power to professionals and better healthcare to patients.”
He added: “Public health budgets have been robbed to pay off huge deficits despite warnings about the strain that spiralling obesity levels will have on the NHS. Labour’s ignorance belies their arrogance.”
A spokeswoman for the Department of Health said: “We welcome this report and its recognition that the Government’s investment and reform have improved patient care. We agree that more has to be done to improve NHS productivity and to tackle some lifestyle issues like obesity. We also agree that spending on healthcare will need to continue to grow above inflation if we are to meet patients’ growing expectations.
“These issues will be central to decisions made in the next few weeks as part of the Government’s Comprehensive Spending Review and the long-term review of the health service being conducted by Lord Darzi.”
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And look what he did to Northern Rock!!
John Ferguson Miller, London, UK
Congratulatins to the kings Fund for getting this report into print Here in Northern Ireland we have a greater emphises ofn health prevention Sadly the money is being spent on committies and irelivent reports . Our local Investing for health group has forty four people on its committee fro example
I suggested running the expert patients programme in Northern Ireland to be told by my Board members that the voluntery sector charities could operate such a system .
Money has been poured into such inititives However no check nor balances to determine the results off such funding have ever taken place
An ever increasing amount seems to be gobbled up by the acute sector Thouh i am estimated that sixty percent off those within the acute sector do not need to be there
We in Northern Ireland are unique in that the Trusts are combined and provide socail services as well and still our N.H.S. teeters on the brink off collapse
One final point 49 % gdp spent here
What is wrong
Kevin Taylor, Omagh , Northern Ireland
"Staff numbers have risen far above the targets set in the NHS Plan of 2000, with targets for consultants exceeded by 16 per cent, for GPs by 166 per cent, for nurses by 272 per cent, and for therapists by 102 per cent. "
So we have 3.7 times as many nurses as we planned to have? I think you've got yhe statistics wrong again.
Frank Upton, Solihull,
Here's a small example of the avoidable inefficiencies in the NHS that must waste time and money on a massive scale. I am currently pregnant. I started my pregnancy in one hospital and half way through, moved house and changed hospital. When I attended my first appointment at the new one I presented them with all the official documents providing evidence of the results of the routine antenatal blood tests I had had done at the first. Apparently this wasn't good enough. I was made to repeat all the blood tests and wait for the same results so that 'they could have the data on their computer system'. It would have taken 2 minutes for someone to type the results into their database but apparently the only option was for all the tests to be repeated. How often must this occur across the country? I'm sure it's not a phenomenon restricted to maternity services.What a futile waste of time and resources.
Lucy, London, England
I feel that the whole concept was designed for different times and needs to be scrapped rather than overhauled.
As things stand, money is poured into a seriously leaky bucket. Greater accountabiity is needed - not to government but to the investors - us. People should be entitled to a statement of how much they pay into the system in a unit trust type of system.
I particuarly object to paying for an NHS Dentistry service which I cannot utilise because of the poor availability of places. I'd rather keep the money and go private. I dont understand why this isn't more of a political issue than it is.
Paul Carty, Folkestone, Kent
The NHS needs to be ripped up and destroyed.
Bishop Hill, Scotland,
The NHS can never be "efficient". People expect and demand treatment for any condition regardless of cost. The desire of politicians to be liked (and voted for) prompts them to respond and so the poor old NHS has no strategy only a set of unrelated targets. A business would have to define its business much more clearly and decide what it was not going to do as well as what it was going to do. For an NHS under political control this is impossible.
Stephen Warren, Odessa,
Less wage grabs, less management. Currently the people getting the chop are the useful ones whilst the oversubscibed managers protect their own jobs.
An example of waste: The waiting lists are 'managed' by a separate department. Not true. They input patient data at a terminal. For this they get the highest pay grade (5). They don't actually manage anything, that is done at secretarial level of the appropriate department for the patient. A monkey can be a data entry clerk and you can pay it peanuts.
David Smith, Stourbridge, UK
As a guy on the radio said yesterday - "I know where the moneys' gone - the consultant down the road from us has just bought himself a brand new Aston Martin convertible, and our GP has just bought himself a holiday home in Spain.
And all because the government thought the docs and consultants wouldn't line their own pockets. Just like MPs and Cabinet Ministers don't, I guess?
Jeremy Poynton, Fromeville, 51st State
âGovernment simply cannot afford to be the passive observers of unhealthy lifestyles, only intervening when chronic diseases such as diabetes, heart disease or lung cancer are already well established,â I see, so once again we have this hectoring, bullying Nanny State on our backs. As if we haven't had quite enough!
Adrian Ryan, Donegal, Ireland
The chattering classes are at it again....
Peoples expectations of the NHS are continually expanding so it will never be able to satisfy everyones expectations.
On a day to day basis our NHS delivers a fantastic service, but it is obviously not without its wrinkles.
Some practises need to change, ie consultants need to do a 5 day week amongst other things.
Neither Pru Health nor Bupa can deliver what our NHS does 365 days a year.
brian bunting, chorley. lancashire, UK
My 7 year old daughter had to go to see the doctor yesterday with a suspected allergic reaction. When arriving at the GP's surgery at 3pm (the surgery where she is registered, and has always been registered), she was turned away as she had somehow become un-registered. As registering takes 24 hours (why?), she had to go to A&E (great fun that, and lengthy fun too). At A&E the diagnosis was quickly made - a burned mouth. Surely this can be better managed.
Nick Davies, Didsbury, Manchester UK
Public Health initiatives are useless without the correct legislation/action. That this is so is clearly indicated in its history, from the pump at Snow Hill to the Victorian sewage systems. We can see the same thing happening with smoking, with the latest report from Scotland demonstrating a drop in death from smoking related ilness since the smoking ban in public places. Exhortation has never, and will never prove to be an effective tool in the armamentarium of Public Health; lung disease, cardiac disease, dental decay, obesity are diseases of lifestyle, and no matter what is said, it is only on a personal level, with great effort, that any change can be made. This is not the realm of Public Health.
'Let the polluter pay', is a cry from the past with environmental issues. 'Let the disease causers pay', with swingeing taxes on tobacco, sugary foods, fatty processed foods, might well be adopted by Public Halth Departments.
W A Quirke, Derby,
We need to take a step back when reading this report then take a step forward. I will give you an example.look at the new SHA Teams set up over a year ago,who's been appointed to lead these new organisations?Various NHS Trusts Chief Excs!!!!!! look at the performance of these Chief Excs in their previous roles ?you will see clearly the extent of the problem in trying to improve the NHS. Accountability is non existant. Some of these Trusts have been placed into Special Measures yet their Chief Excs have never been held to account!!!!!! In fact ,they are now part of the teams who are expected to improve performance and push through the Agenda for Change.Any organisation placed in special measures should expect at the very least ,that the Head of that organisation is held to account?Sir Derek and Lord Darzi need to look a bit closer to home to find the answers to the failings in the NHS
Mary Hoult, Leeds , Yorkshire
Sir Derek Wanless sounds as a massenger of doom & gloom for eminent death of the NHS.It is a conspiracy to undermine the NHS as a provider of the services to benefit the private companies to take over provider role. It is successive governments' insistence on allowing a bullying free market to reign that is leading to a major health crisis. The government's untested reforms; contradictory policies and fondness for the private sector are leading the NHS ever deeper into debt.It would be wrong, therefore, to say that this new pay system has added to the financial difficulties faced by trusts. Sir Derek Wanless has been disingenuous about why, after so much investment, the NHS is now in financial difficulty. This truth is so extraordinary it is hardly believable. More than £10bn is going into private healthcare companies that don't come under the tariff system and are guaranteed the contract price, regardless of how many operations they actually carry out.
Kailash Chand, Manchester, uk
Is it not always the answer of Labour Government's to throw vast amounts of public money at problems to receive no return? It is true of the NHS, law and order and education. The sooner this squanderous inept Government is routed, the better!
Rod Ballard, Leicester, Leicestershire
This surely demonstrates what we already know - Government cannot efficiently or effectively compete with the private sector when it comes to delivering a service, whether this is education or health. The sooner we are given the chance to opt out the better, I would much rather put my tax contribution toward PruHealth or BUPA.
Doug Bates, St. Albans,
Will there ever be an efficient NHS? Surely the size of the institution ensures that we will never be able to describe it as efficient.
Judy , Liverpool, england
it may be worth examining how much of the amounts invested were for out of court settlements resulted from negligence claims. Whether the money could have been better spent on staff training and development to minimise potential negligence from occuring. Pouring money into an organisation without a radical plan to change the culture of behaviours is no different than throwing money into the ocean...for which in my view is what has happened to the huge investment funded through the increase of 1% national insurance tax.
dschoy, london,
As long as consultant surgeons are salaried employees, with salaries having no relationship to amount of work done, efficiency will be alien to the surgical departments of the NHS.
In those hospitals, where remuneration of the surgeons is related to the quantity of work they do, efficiency is generally better.
Ian Robertson, Manchester, England