Letter from Susan Doohan, Policy Executive
IHA to Dr Richard Taylor MP (DD 13A)
COSTS OF CARE
I write, further to your recent meeting with
Dr Tim Evans of the Independent Healthcare Association publication
(IHA) to send you a copy of the IHA report "Costs of Care
I work as Policy Executive at the IHA on the more detailed aspects
concerning the costs of care. Tim advised me that you would also
be interested to learn more about the higher costs of local authority
in-house provision and I include below a table containing the
updated figures from the PSSRU (University of Kent) figures from
their report "Unit Costs of Health and Social Care"
for your further information.
DIFFERENCE IN CARE PACKAGE COSTS (AS IDENTIFIED
IN PSSRU REPORT) BETWEEN INDEPENDENT SECTOR RESIDENTIAL CARE HOMES
AND LOCAL AUTHORITY CARE HOMES AND BETWEEN INDEPENDENT SECTOR
NURSING HOME CARE AND NHS HOSPITAL COSTS
||Independent Sector residential care for elderly people
||Local authority residential care for elderly people
||Difference Amount %
|Average costs per week 2000-01||£303 care package costs
||£463 care package costs
||£160 per week 52%
| ||Independent Sector nursing home care for elderly people
||NHS Hospital Costs for elderly people (inpatient)
||Difference Amount %
|Average costs per week 2000-01||£412 care package costs
||£1,008 per inpatient week
||£596 per week 144%
|Source: Netten, A Rees, T and Harrison, G. (2001), Unit Costs of Health and Social Care (table produced by IHA).
I would draw your attention in particular to the column on
the right which shows the difference between packages of care
in the independent sector and local authorities and I think you
will agree that these figures/percentages are quite startling.
Efficiency is going to be a key word for the futurepost
the budget and forthcoming spending review settlements. It is
clear that throwing money at the problem is not enough (both in
the NHS and social services) and how that money is spent is crucial.
We believe that these figures emphasise that when Labour politicians
say that the Best Value initiative is making a difference at the
front line this, in fact, is not the case.
The IHA has long been concerned that local authorities have
been concentrating too much on keeping fees to independent sector
homes artificially low (due to their alleged cash-strapped status)
rather than paying attention to high quality and outcomes for
the people being cared for. The "Costs of Care" report
enclosed highlights these and other issues quite concisely and
I do hope you will have time to go through it.
I hope this helps but please do not hesitate to contact Tim
Evans, Barry Hassell (Chief Executive), Ann Mackay (Director of
Community Care), or myself if you require any further information.
19 April 2002
Not printed. Back