How can the NHS remain productive in a competitive health care market?

With £15-£20 billion in efficiency savings required and a squeeze on budgets in real terms from next year, now more than at any time in the history of the NHS has there been the need to reduce unnecessary costs.

An Ipsos MORI poll of FTSE 100 companies reported that those companies with externally published reporting on employee health and wellbeing outperformed the rest of the FTSE100 by 10% - Business in the Community/Ipsos MORI, 2010.

Evidence linking the individual employee and organisational wellness is building. In the recent Boorman Review, Dr Steve Boorman reported "compelling and convincing evidence that investing in improving workplace health...can bring real and substantial benefits to the NHS and to patients" - DoH, 2009.

Most NHS and business managers instinctively know that better employee engagement and wellness leads to better productivity. But with the financial and resource challenges faced today, few are convinced that a proactive approach to health and wellbeing will bring a significant return on investment; I am certain that it does.

By way of example, Capita launched a formal and accurate system to collect absence data to identify trends and absence patterns. As a trigger for reducing persistent short term absence we included the Bradford Factor and 'day one' referrals for all musculo-skeletal and stress-related absences. We also introduced a direct point of contact with case management and treatment services for employees when triggers were met; it supports employees and managers. The system, together with absence management training for line managers, has  reduced absence by 30 per cent over two years and saved £400 per employee.

NHS mangers that proactively engage with employees and report on outcomes in real-time can improve productivity and deliver on cost reduction targets. This will help them to be more commercially viable in an increasingly competitive environment.

For organisations to realise the full benefits of investing in employee wellness and engagement, occupational health providers must work constructively with human resource and line managers.

How will your NHS organisation look to maximise its productivity, efficiency and ensure long-term sustainability?

For more information: please contact Dr Mark Ratnarajah, mark.ratnarajah@capita.co.uk

“ If absence [in the NHS] were to be reduced by one third across the board, it would bring...a gain of 3.4 million working days a year...with a estimated annual direct cost saving of £55million “ NHS Health and Wellbeing Review Interim Report (DoH,2009)