ICBs to reduce running costs by 50% by the end of 2025.
New NHS England chief executive Sir Jim Mackey wasted no time in his mission to reform the NHS and informed ICB leaders they must reduce running costs by 50% by December 2025. The move follows a letter sent by Mackey and outgoing chief executive last week, identifying a £6.6bn funding deficit.
The scale of cuts is likely to require redundancies and to make smaller ICBs untenable. A move to a regional model of leadership, governance, and finance functions would seem the most likely outcome. The capacity required to deliver this, and the resulting staff churn, may have an impact on the NHS’s ability to deliver the Ten Year plan currently under development.
NHS Confederation CEO Matthew Taylor is quoted by the Health Service Journal as saying: ”We understand the precarious state of the public finances and our members are prepared to do what is required… But the reality is that these cuts will require major changes and they will inevitably make the task of delivering long term transformation of the NHS much harder.
“The 10 Year Health Plan will set out the government’s future ambitions for the NHS, and the danger is that we go too far and leave little to no capacity to deliver this long term transformation.”
BIVDA understand the need for change within ICBs and are supportive of the government’s plans for reform – indeed, we have been heavily involved in the development of the Ten Year Plan. Diagnostics are a key part of a functioning health system, and the innovative and more effective use of IVDs within the NHS is a key part of delivering the NHS’s three shifts. We will continue to advocate for the NHS to operate as efficiently as possible to provide these key services.
