Sixth report from the Select Committee on Estimates : together with the minutes of evidence taken before sub-committee D and appendices, session 1956-1957: Running costs of hospitals.

  • Great Britain. Parliament. House of Commons. Select Committee on Estimates
Date:
[1957]
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Licence: Public Domain Mark

Credit: Sixth report from the Select Committee on Estimates : together with the minutes of evidence taken before sub-committee D and appendices, session 1956-1957: Running costs of hospitals. Source: Wellcome Collection.

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    19 February, 1957.] [Continued. very efficient and has the lowest cost of any region?———One of the lowest, yes. 589. Yes, one of the lowest costs of any region. Can you say briefly how you have brought this good state of affairs into being? Well, of course, I suppose like every Board, the H.M.C.s submit their estimates to us. We go through them very carefully, particularly that part of the estimate where the H.M.Cs. estimate what their maintenance requirements will be for developments. We are not so much concerned with what they estimate they will need to maintain the services as they are, because we know that the H.M.Cs. are reasonable. 590. May I pick you up on that point? Is there any way in which you are able to bring about economy in the actual running costs? Well, yes. I think possibly the main reason for any success which the Manchester Board may have had is that we felt (I am talking about two or three years ago, when this started) that when the Ministry gave us the global allocation, we should only distribute to the H.M.C.s what they required for their minimum requirements, retaining at Board level as big reserves aS we can. The amount of the reserves depends upon what the global allocation to the Board is, because obviously we have to give to the H.M.C.s a sufficient amount to run their hospitals as they are. But what we do is that we set aside three very important reserves, having allocated the minimum amount to the H.M.C.s (this is at the beginning of the year). We set up what we call a deferred main- tenance reserve, and this we have been doing for about two years. This year and the year before it was £175,000. Now, that maintenance reserve is re- tained by the Board so that the Board can decide how that money can best and properly be spent. 591. How big a proportion is kept in reserve? The whole of the £175,000. 592. But what proportion does that represent? Of the Board’s total? 593. Yes? It is about 1/140th. The total allocation is about £23 million. 594. Out of which you are able to set aside. £350,000? No, Sir; out of which we set aside three reserves. 595. That is, £350,000? No, £450,000 ; and one of these reserves is to spend money on buildings where money ought to have been spent years ago. It is deferred maintenance. 596. I cannot believe that such an apparently slender weapon can be the only influence which you can bring to bear. What other influences have you? Well, you see, every month the Finance Committee sees in the greatest possible detail what every H.M.C. is spending, where they are overspent and on what particular item they are over- spent. We have frequent discussions with H.M.C.s, both at Chairman’s level and, more frequently, of course, with the Treasurer and the Finance Officer of the H.M.C. concerned. Captain Waterhouse. 597. Who do you mean when you say oo) mikes Do you mean yourself, as Chairman, or your officials? AS Chairman of the Board, I myself have quarterly meetings with every H.M.C. Chairman. Chairman. 598. All of them together?-——All of them together, at which anything of in- terest can be discussed, whether it is on the agenda or not. But, dealing with finance, if we see that an H.M.C. is over- spending by these monthly statements, we get—— 599. You mean spending over their estimate? Month by month. 600. Yes, of course? Then the Treasurer will go and discuss things or ask the Finance Officer of the H.M.C. to come and discuss things with the Treasurer and find out why it is over- spent. Sir Henry D’ Avigdor-Goldsmid. 601. I would like to address myself to the question of underspendings, which particularly come up at this time of the year. What is your attitude, after the 9 months’ figures are in your hands, when the Hospital Management Com- mittees report underspending? Well, we are very pleased if they do, but, generally speaking, it is not often that we find that. 602. No. That leads me to this posi- tion, do you not invite requests for draw- ings on the reserves from the H.M.C.s for money to be spent in the last three
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