- the Committee reports that management and transaction costs have risen as a result of the purchaser / provider split;
- it concludes that Payment by Results increases transaction costs and provides hospitals with incentives to keep patients in hospital rather than treating them in the community as other government policy advises; and
- the report points out that the FESC system of bringing in private companies to advise the NHS is an expensive way for the health service to go about making improvements - it calls on the Department of Health to determine whether the taxpayer is getting value for money or not.
See full FT report at http://www.ft.com/cms/s/0/0f03fbae-3b54-11df-b622-00144feabdc0.html