Press Release
More needs to be done to cut costs of temporary staffing, says NHS Employers
15 June 2006
Many millions can be saved for the NHS if trusts take steps to tackle the costs of temporary staffing, says NHS Employers today.
Publishing advice for trusts, Managing the costs of temporary staffing, NHS Employers’ highlights the fact that better planning and coordination can enable trusts to make major savings on their temporary staffing spend.
The cost of providing staff to cover shifts on a temporary basis represents a major part of any trust’s paybill. These costs have fallen in recent years through better management of in-house banks, use of framework agreements for agency staff and through the competition generated by NHS Professionals, but there are things that trusts can do to bring them down further.
Sian Thomas, Deputy Director of NHS Employers, said:
“The management of temporary staffing has always been a major challenge for employers and, although there has been progress and we are seeing considerable improvement in spend on nursing staff, the costs of medical and of allied health professionals staffing continues to rise.
“We need to take steps to reduce this cost to the service now so that, as the workforce becomes more flexible, we don’t see a corresponding increase in temporary staffing bills. There are many things that trusts can do to reduce their costs and there are many good examples of initiatives that have been taken across the service.
“In these times of financial pressures, we are helping trusts to find ways to reduce their costs and to increase productivity and this is a quick win.”
Both the Institute for Innovation and Improvement and the National Audit Office have indicated that trusts can save millions for the NHS by better management of their agency staffing spend.
NHS Employers advises trusts to:
- Agree a strategic plan for the optimum use of temporary staff
Agree local accountability arrangements - Decide the format for internal management information reporting and include compliance with agency framework agreements
- Benchmark total spend and use with other trusts
Consider implementing a rostering and agency invoice monitoring system - Audit quality standards in locum use against NHS Professionals’ standards.
A number of trusts have already tackled their temporary staffing costs with great success:
- East Kent Hospitals NHS Trusts has reduced agency spend on doctors by £1 million by putting in place a local policy, responsibilities, accountabilities and new control systems.
- Ashford and St Peters Hospitals NHS Trust has increased efficiency in staffing wards and departments by implementing a computer roster system which covers 75% of staff.
- North West Psychiatry Locum Project, is a collaboration of nine trusts in the North West, has established a group of HR and medical directors to drive down costs and increase quality. Over £2 million has been saved over 3 years by, amongst other things, setting an agreed agency rate and appointing NHS Professionals as the prime supplier.
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