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Doctors must learn the basics of NHS finance to help drive greater efficiency and better outcomes for patients, according to the Academy of Medical Royal Colleges and the Audit Commission.

The new Guide to Finance for Hospital Doctors, published today (9 July), is a practical manual that aims to help hospital doctors get to grips with the way the money works in the health service. It is especially useful for medical students and doctors in the early stages of their careers.

The authors of the guide say that through greater involvement of clinicians the NHS can achieve better value for money and even better outcomes for patients.

Steve Bundred, Chief Executive of the Audit Commission, said:
'We all know that most NHS doctors do a fantastic job but we cannot ignore the fact that the NHS is a £100 billion organisation and it is the doctors who dictate where the cash goes. We don't need doctors to be accountants, but I've no doubt we can drive greater efficiency to benefit patients if doctors become more familiar with how the money works.' 

Professor Dame Carol Black, Chairman of the Academy of Medical Royal Colleges, said:
'It is essential that doctors, who are responsible for spending money when caring for their patients, understand and engage with the way that money is spent. This really useful guide shows how the quality of care can be improved when doctors and finance specialists work together with a common aim and a united approach.'

The new guide follows a joint statement on clinicians and finance from the Commission and the Academy, along with the Royal College of Nursing, the NHS Institute for Improvement and Innovation, the Healthcare Financial Management Association and the Department of Health.

The statement on clinicians and finance was also endorsed by Lord Darzi, Parliamentary Under Secretary of State, who said: ‘My review is very clear: that as well as harnessing the skills of health professionals in making tough clinical decisions, the NHS needs to bring their expert judgement to bear on difficult financial and management decisions that impact on patient care. Only then will the NHS realise its full potential.’

The new guide will help doctors engage with NHS finance specialists and it contains case studies from Gloucestershire, London, Bolton and Plymouth that illustrate how better understanding of the money can help transform services. It also contains a useful glossary explaining the language of NHS finance.

Notes to editors

1. The guide is not about focusing on cost alone. It is about how money can best be used to improve the quality of care, combining operational and clinical effectiveness. Efficient use of resources and good quality services go hand-in-hand.
2. Chapters in the guide explain how the money works in the NHS; trust finance regimes; managing a budget; making the best of the money available; further sources of information; and a glossary of NHS financial terminology.
3. In February 2009 there was an unprecedented call for clinicians to become more involved in NHS finance, agreed by the Royal College of Nursing, the NHS Institute for Improvement and Innovation, the Healthcare Financial Management Association, the Department of Health, the Academy of Medical Royal Colleges and the Audit Commission. View the clinicans and finance statement in full.
4. The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone.
5. Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing the £200 billion spent by 11,000 local public bodies.
6. As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.
7. Further details about the role of the Audit Commission can be obtained from - http://www.audit-commission.gov.uk
8. The Academy of Medical Royal Colleges co-ordinates the work of the Medical Royal Colleges and Faculties: http://www.aomrc.org.uk

Nigel Watts
Media Relations Manager
Audit Commission
Tel: 020 7166 2129 or 07813 315538
Email: nigel-watts@audit-commission.gov.uk

Max Prangnell
Communications Director
Academy of Medical Royal Colleges
Tel: 020 7486 0067 or 07734 361055
Email: max.prangnell@millbankmedia.com