Saturday 24 October 2009

Management Consultants-on the verge of extinction?




The health select committee has demanded that the government collect and publish details of all NHS spending on management consultants.

In a report on its 2008 public expenditure questionnaire (PEQ), published yesterday, the committee calls for the publication of full details of all consultancy contracts, including what they cover, how long they last and what they cost.

It also calls for the 10 highest rates paid by each type of NHS organisation to be published, to name and shame high spenders. It also wants regulator Monitor to do the same for foundation trusts.

This is the first time the committee has published a specific report on the PEQ. It follows apparently contradictory answers to questions given by NHS chief executive David Nicholson.

In December 2008, he told the committee that the NHS had 'started the process' of collecting information on spending on consultants.

But in a second meeting, three months later, he said that collecting detailed information would be used to 'micromanage organisations; we do not think that is the right thing to do'.

In 2007/8 the NHS spent £308.5m on management consultants. This excludes foundation trusts, which do not identify consultancy costs.

The highest spending types of trust were PCTs, which spend £132.6m.


Earlier this month an exclusive Healthcare Republic investigation found that more than half of PCTs used private firms or consultants to help commission services in 2008/9

And about bloody time, why should we pay CEOs £150,000+ pa and medical director’s £200,000 pa when they are spending millions on private consultants.

Answer-get rid of the consultants or reduce the salaries of the senior management to £20,000 which is what they are really worth.


Angus

Angus Dei on all and sundry

AnglishLit

Angus Dei politico

1 comment:

blackdog said...

If only Angus! I have certain knowledge of a major teaching hospital that uses an accounting consultancy simply to reclaim its VAT.
Now I know that dealing with HM Customs & Revenue (super new name for the noughtys that cost millions to implement), but rocket science it ain't. You would think that with the droves of accounts, management and admin staff available this could be accomplished in house. But no, it has to be done by a leading outside accountants on a commission basis robbing the taxpayer of a portion of the legitimate refunds available. Thousands of SME's throughtout the UK manage to do this unaided or with a simple annual audit by thier (usually quite cheap) local accountant. yet the NHS with all its £1.5 billion of administrators has to get it done for them. Why ? Because despite thier ludicrous salaries they are all f***ing clueless. Most were publicly employed all of thier lives and never had to consider such tasks. It is an anathema, a mystery to them. All they had to do was to get Mavis from the local builders office to pop in on Friday mornings to initiate them into the mysteries of VAT accounting for about £10 an hour. She's a right bitch, but she'd soon lick them into shape! She would likely do better job than he with the strange eyebrows as well.