The NHS is living on “borrowed time” and will not survive if Labour cannot improve it, the Health Secretary has said.
Wes Streeting told leaders at the NHS Providers conference in Liverpool there was a need to “recover and renew” the health service.
Mr Streeting told NHS leaders “we are in this together”, adding: “The NHS is already living on borrowed time and if a Labour Government can’t improve the NHS, then it simply won’t survive.”
NHS trusts can expect to be ranked on a range of indicators such as finances, delivery of services, patient access to care and the competency of leadership.
Health leaders hit back at the move, saying it could demoralise staff, and accused ministers of “falling for the appealing notion of a magic productivity tree which will make the NHS more efficient just by shaking the magic tree harder”.
Speaking on Wednesday, Mr Streeting told BBC Radio 4’s Today programme that “where we have poorly performing senior managers, I’ll make no apology for managing those people out, because people know – and this is the guilty secret of the NHS – there are very senior managers who are paid on average let’s not forget £145,000 a year, who are managed out, given a pay-off in one trust and then reincarnate in another NHS trust”.
Under the Government plans, persistently failing managers will be replaced and turnaround teams sent into trusts that are running big financial deficits or offering patients a poor service.
The Department of Health said there is currently little incentive for trusts to run budget surpluses as NHS trusts are unable to benefit from them, but that will now change, with top-performing trusts given more of this cash.
Mr Streeting has already announced that failing NHS managers will be denied pay rises if they do not improve patient care or get their finances in order.
A new pay framework for very senior managers will be published before April next year, with those who do well given financial rewards.
The deputy chief executive of NHS Providers, Saffron Cordery, said the scale of the challenge facing NHS leaders was “huge” and they were “pulling out all the stops to boost productivity while delivering tough efficiency measures”.
She added: “It’s vital we take decisive action to tackle the deep-rooted causes of pressures on the health services, including the lack of resources for public health, prevention and social care, chronic workforce shortages, financial shortfalls and historic underinvestment in the bricks and mortar of the NHS which underpin so many of the challenges we face today.
Matthew Taylor, chief executive of the NHS Confederation, said “the prospect of more ‘league tables’ will concern health leaders, as these can strip out important underlying information.
“NHS staff are doing their very best for patients under very challenging circumstances and we do not want them feeling like they are being named and shamed.
“League tables in themselves do not lead to improvement.
“Trusts struggling with consistent performance issues, some of which reflect contextual issues such as underlying population health and staff shortages, need to be identified and supported in order to recover.”
Nuffield Trust chief executive Thea Stein said: “We know from the special measures for quality regime that naming and shaming NHS trusts can make it harder to recruit staff, which doesn’t help patient care at all.
“Ministers have long warned the NHS against the naive belief in the magic money tree.
“But they themselves are at risk of falling for the appealing notion of a magic productivity tree which will make the NHS more efficient just by shaking the magic tree harder, rather than by changing the drivers of efficiency.
“That can only lead to the NHS being forced back into asking for ‘more, more, more’, with patients ultimately paying the price.”
