11 June 2015

Measuring and improving operating costs in NHS hospitals

Review of Operational Productivity in NHS providers
Department of Health 11 June 2015
  • This interim report outlines the work that has been carried out by Lord Carter of Coles to review the productivity of NHS hospitals, working with a group of 22 NHS providers to see how the NHS could save money by doing things more efficiently and spreading best practice. 
  • The report includes a new method of comparing operating costs: the Adjusted Treatment Index (ATI). This is a ratio of a hospital’s actual costs of treating its patients to the national average costs for the particular case-mix of its workload. 
  • Index values of more than 100 mean that a hospital’s costs are higher than average, so a hospital performing 100 hip replacements a year at a cost of £3,300 per operation against a national average cost of £3,000 would have an ATI of 110.
Read the blog by David Maguire, Data Analyst at the Kings Fund, for more about ATI
A new way of measuring hospital productivity: what does it add?