22
Accepted
Of the £8.1 billion estimated to be needed to deliver its digital transformation ambitions, NHSE&I...
Conclusion
Of the £8.1 billion estimated to be needed to deliver its digital transformation ambitions, NHSE&I expects that £5.1 billion will be funded by national bodies. This includes £2.2 billion of revenue funding, which covers day-to-day activities, and £2.9 billion of capital funding, which covers investments in new buildings or equipment.47 The National Audit Office found that NHSE&I’s costing estimates for the £8.1 billion were based on very limited cost data, using information from just 14 trusts. We asked whether the Department was confident that the £8.1 billion would be enough to achieve its ambitions, particularly given problems of under-investment in the past. The Department told us that it was confident that the £8.1 billion would be enough to achieve its ambitions and make good progress, but recognised that investment in digital capability would be an “enduring 41 Qq 33 & qq83–85 42 C&AG’s Report, para 6 43 DGT0011 - NHS Providers submission, para 5; DGT0007 - The Royal College of Midwives submission, para 25; DGT0014 - NHS Confederation submission, para 6 44 House of Commons Committee of Public Accounts, NHS capital expenditure and financial management, HC344, Session 2019–21, 8 July 2020. Available at: https://committees.parliament.uk/publications/1779/documents/17455/ default/. 45 Q89 46 Q79; House of Commons Committee of Public Accounts, NHS capital expenditure and financial management, HC344, Session 2019–21, 8 July 2020. 47 C&AG’s Report, para 6 16 Digital transformation in the NHS feature” of the NHS. The Department explained that the £2.9 billion of capital funding will be subject to approval at the next spending review, due in autumn 2020. We asked the Department whether the COVID-19 outbreak would put extra financial pressures on the Department’s spending. In response, it told us that that “generally speaking” the Treasury had been meeting additional costs that have resulted from the pandemic and it was not expecting any additional financial pressures
Government Response Summary
The government agrees with the implied need for clear cost/benefit understanding, stating its new digital strategy, due Spring 2021, will detail how robust cost data will be collected, and will include a commissioned economic assessment of digital transformation.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2021 4.2 DHSC and NHSX fully recognise the importance of having a clear understanding of the whole-life costs and benefits of digital transformation across the health and social care system. This is crucial for effective decision making and to ensure value for money for the taxpayer. The new digital strategy will therefore set out how we plan to achieve this, at both national and local level. 4.3 The strategy will detail how we will: establish a clear baseline and track the digital maturity of organisations; collect robust cost and benefit data from local systems; and develop the relevant tools and guidance to support local systems in making confident investment decisions. It will also outline how we will track and assess the impact of digital transformation on patients, clinicians and services. 4.4 DHSC and NHSX have already commissioned a full economic assessment of the value of digital transformation across the NHS, which is due to be published as part of the new digital strategy in Spring 2021. This will consider the whole-life costs and benefits of different approaches and will provide a clear evidence base to drive future investment.
Source
Committee
Public Accounts Committee
Report
Twenty-Second Report - Digital transformation in the NHS
06 Nov 2020
HC 680
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.7 yrs
Report published
06 Nov 2020