A business plan is the best prescription

Watching the current crop of medical soap operas, it would be easy to run away with the idea that hospitals have always been subject to the discipline of the market and not places for tending the sick whatever the cost.

In fact, though, such an approach was anathema to the National Health Service until as recently as the mid-Eighties. As with the rest of the public sector, the NHS only became familiar with business planning once the privatisation of the likes of British Telecom and British Gas had paved the way for a shake-up that - among other things - has entailed the separation of the purchase of services from their provision.

One effect of that has been the sudden growth in business planning, identified by Tom Jones and Malcolm Prowle in the latest edition of the Association of Chartered Certified Accountants' guide to NHS finance.

Health authorities need to concentrate their strategic planning on identifying needs and deciding priorities, the authors write in "Health Service Finance - An Introduction", while NHS trusts need to prepare strategies on the basis that they are business units which must provide services that meet purchaser needs, attract income and be financially viable in order to survive.

As a result, they need to prepare business plans - which, the authors helpfully explain, are "longer and shorter-term plans which are business oriented".

Under current NHS rules, such an activity is a requirement. But as Mr Jones, a director of the healthcare companies MJM Healthcare Solutions and Mental Health Strategies, and Mr Prowle, a KPMG management consultant specialising in the sector, explain, if this was the only reason that trusts prepared plans it would be "unlikely that there would be much commitment to the process at local level and the quality of the business plans would suffer accordingly".

Raising finance has assumed special significance in the new world in which health service managers find themselves. The guide makes clear it that business plans must underpin the content of the case for undertaking particular capital projects.

"Just a clinical case is not enough," it says. "One impact of the NHS reforms has been the need for providers to consider whether, in financial terms, they can afford particular levels of capital investment and the extent it will add value"

Roger Trapp

`Health Service Finance - An Introduction' (fourth edition), by Tom Jones and Malcolm Prowle, is available from the Association of Chartered Certified Accountants (0171-396 5922) at pounds 19.50.

Suggested Topics
Sport
Luis Suarez and Lionel Messi during Barcelona training in August
footballPete Jenson co-ghost wrote Suarez’s autobiography and reveals how desperate he's been to return
News
newsMcKamey Manor says 'there is no escape until the tour is completed'
Voices
Hunted: A stag lies dead on Jura, where David Cameron holidays and has himself stalked deer
voicesThe Scotland I know is becoming a playground for the rich
News
people
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
Architect Frank Gehry is regarded by many as the most important architect of the modern era
arts + entsGehry has declared that 98 per cent of modern architecture is "s**t"
Money
Welcome to tinsel town: retailers such as Selfridges will be Santa's little helpers this Christmas, working hard to persuade shoppers to stock up on gifts
news
Arts and Entertainment
Soul singer Sam Smith cleared up at the Mobo awards this week
newsSam Smith’s Mobo triumph is just the latest example of a trend
News
Laurence Easeman and Russell Brand
people
Sport
Fans of Dulwich Hamlet FC at their ground Champion Hill
footballFans are rejecting the £2,000 season tickets, officious stewarding, and airline-stadium sponsorship
News
Shami Chakrabarti
people
Arts and Entertainment
Benedict Cumberbatch has refused to deny his involvement in the upcoming new Star Wars film
filmBenedict Cumberbatch reignites Star Wars 7 rumours
Sport
football
News
news
Latest stories from i100
iJobs Job Widget
iJobs Student

Maths Teacher

£110 - £200 per day: Randstad Education Leeds: Secondary Maths Teacher for spe...

Nursery Nurse

£7 - £8 per hour: Randstad Education Leeds: Nursery Nurse Leeds November start...

EBD LSA required - Vale of Glamorgan

£60 - £65 per day + plus free travel scheme: Randstad Education Cardiff: The J...

EBD Teacher - Food Technology Specialist

£100 - £181 per day: Randstad Education Leeds: The JobTo plan and deliver all ...

Day In a Page

Wilko Johnson, now the bad news: musician splits with manager after police investigate assault claims

Wilko Johnson, now the bad news

Former Dr Feelgood splits with manager after police investigate assault claims
Mark Udall: The Democrat Senator with a fight on his hands ahead of the US midterm elections

Mark Udall: The Democrat Senator with a fight on his hands

The Senator for Colorado is for gay rights, for abortion rights – and in the Republicans’ sights as they threaten to take control of the Senate next month
New discoveries show more contact between far-flung prehistoric humans than had been thought

New discoveries show more contact between far-flung prehistoric humans than had been thought

Evidence found of contact between Easter Islanders and South America
Cerys Matthews reveals how her uncle taped 150 interviews for a biography of Dylan Thomas

Cerys Matthews on Dylan Thomas

The singer reveals how her uncle taped 150 interviews for a biography of the famous Welsh poet
DIY is not fun and we've finally realised this as a nation

Homebase closures: 'DIY is not fun'

Homebase has announced the closure of one in four of its stores. Nick Harding, who never did know his awl from his elbow, is glad to see the back of DIY
The Battle of the Five Armies: Air New Zealand releases new Hobbit-inspired in-flight video

Air New Zealand's wizard in-flight video

The airline has released a new Hobbit-inspired clip dubbed "The most epic safety video ever made"
Pumpkin spice is the flavour of the month - but can you stomach the sweetness?

Pumpkin spice is the flavour of the month

The combination of cinnamon, clove, nutmeg (and no actual pumpkin), now flavours everything from lattes to cream cheese in the US
11 best sonic skincare brushes

11 best sonic skincare brushes

Forget the flannel - take skincare to the next level by using your favourite cleanser with a sonic facial brush
Paul Scholes column: I'm not worried about Manchester United's defence - Chelsea test can be the making of Phil Jones and Marcos Rojo

Paul Scholes column

I'm not worried about Manchester United's defence - Chelsea test can be the making of Jones and Rojo
Frank Warren: Boxing has its problems but in all my time I've never seen a crooked fight

Frank Warren: Boxing has its problems but in all my time I've never seen a crooked fight

While other sports are stalked by corruption, we are an easy target for the critics
Jamie Roberts exclusive interview: 'I'm a man of my word – I'll stay in Paris'

Jamie Roberts: 'I'm a man of my word – I'll stay in Paris'

Wales centre says he’s not coming home but is looking to establish himself at Racing Métro
How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker