Scottish Government
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NHS funding
The independent body charged with reviewing NHS Health Board funding has submitted its final report to the Scottish Government.
Ministers will now consider the detailed recommendations of the NHS Scotland Resource Allocation Committee (NRAC) within the context of the forthcoming Spending Review.
In her initial response to the report, Health and Wellbeing Secretary Nicola Sturgeon today made clear that any adjustments that might be made to the 14 territorial Health Boards' funding would not only be phased in over a number of years, but that no Board would receive a cut in funding.
Ms Sturgeon said:
"Having been appointed by the previous administration in 2005, the Committee have undertaken a significant amount of work in assessing resource allocation across Scotland. They have done this in a fair, objective and transparent manner, with the full engagement of stakeholders.
"The report raises some very important issues which must be considered within the context of the current Spending Review.
"I can confirm today that, if we decide to make any adjustments in Health Boards' relative funding, no Board would receive less funding than it does at present and any changes would be phased in over a number of years as has been the practice under both the previous SHARE and Arbuthnott formulae
"As a key part of the report's consideration, I am asking the Parliament's Health and Sport Committee for their views on all the recommendations, and will also be engaging closely with all our Health Boards."
The earliest any proposed revisions to the Formula could be implemented is 2009/10.
NRAC was established in March 2005 to "improve and refine" the Arbuthnott Formula, which has been in use since 2000 to allocate resources to the territorial NHS Boards to cover funding for Hospital and Community Health Services and GP Prescribing.
Over the summer of 2005, the Committee consulted with NHS Boards to seek their views on the current Formula and identify criteria against which a revised Formula could be measured.
Research was then commissioned to develop recommendations for improving the Formula. The Committee launched a consultation document based on the research recommendations in summer 2006. Further analytical and research work was undertaken following the consultation feedback and the final report has considered all of the research and the feedback received.
The final report includes more than 30 recommendations, including a proposed revised formula to replace the Arbuthnott Formula, as well as other recommendations on data developments, use of formulae in funding allocations, and on the future maintenance of the formula.
The Arbuthnott Formula allocates approximately 70 per cent of the total NHS Scotland budget, which in 2007-08 saw £6.87 billion allocated out of a total budget of £10.26 billion.
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