Twenty-Second Report - Digital transformation in the NHS

Select Committee

Public Accounts Committee HC 680 6 November 2020

Report Status Government responded

Conclusions & Recommendations 24 items (5 recs)

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Government Response (AI assessment · 23 of 24 classified)

Accepted 13

Acknowledged 2

Not Addressed 8

Government response

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty-second report from Session 2019-21 · published 4 Feb 2021

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Recommendations & Conclusions

2 results

1 Conclusion Acknowledged

On the basis of a report by the Comptroller and Auditor General, we took evidence...

Conclusion

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department of Health and Social Care, NHS Digital and NHSX on digital transformation in the NHS.1

Government Response Summary

The government response acknowledges the committee's introductory statement about the basis of its report, reiterating the committee's process.

HM Treasury

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21 Conclusion Acknowledged

NHSE&I expects that trusts will need to contribute £3 billion, under matched- funding arrangements, between...

Conclusion

NHSE&I expects that trusts will need to contribute £3 billion, under matched- funding arrangements, between 201920 and 2028–29 to meet its current plans for a digital transformation.42 However, in their written evidence to us NHS Providers, the Royal College of … Read more NHSE&I expects that trusts will need to contribute £3 billion, under matched- funding arrangements, between 201920 and 2028–29 to meet its current plans for a digital transformation.42 However, in their written evidence to us NHS Providers, the Royal College of Midwives and the NHS Confederation all raised concerns about the ability of trusts to fund digital transformation programmes.43 The Royal College of Midwives told us that in its survey of ‘digital midwives’, a lack of money was the most common answer to its question on why they had not achieved digital transformation within their trust. NHS Providers also told us that that that access to funding was one of the factors driving the variation in digital maturity between trusts. We have reported on the financial and service sustainability of NHS bodies every year since 2011, and have consistently highlighted a range of challenges faced by the NHS, including rising demand, lack of capital investment and tackling trust deficits.44 We asked the Department how it was ensuring that those trusts which had financial difficulties were still able to invest in digital transformation. The Department told us that the funding for digital transformation was not ring-fenced. It expected the £3 billion from trusts to come through its matched-funding arrangements under which the Departments and trusts contribute equivalent funding for local projects. It explained that as part of its strategy to return the provider sector to financial balance, it planned to engage with the most financially-challenged trusts to develop recovery plans.45 However, our reports have illustrated that many trusts have deep-routed structural issues that are difficult to fix. For example, our report on NHS financial management and sustainability found that writing off the loans owed by struggling trusts does not solve the underlying problems facing these organisations.46 The cost and benefits of the digital transformation Show less

Government Response Summary

The government agrees with the conclusion, recognising the importance of understanding the whole-life costs and benefits of digital transformation. The new digital strategy, due in Spring 2021, will set out how to achieve this, and a full economic assessment will be published with the strategy to provide an evidence base for future investment decisions, without directly committing to address the funding shortfall for trusts.

HM Treasury

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