Mobile menu icon
Mobile menu icon Search iconSearch
Search type

Distributing NHS resources

Ongoing research at The University of Manchester is helping the NHS distribute its £85 billion budget more fairly across the country.

NHS resources are now directed to where they are required most. This has led to a substantial reallocation of funding between areas.

Some areas have been given up to £30 million more to reflect higher needs than had been previously recognised, and savings of up to £20 million have been made in other areas.

Since 1998, Professor Matt Sutton and his colleagues have been developing and reviewing the methods the Department of Health uses to estimate the funding formula for allocating NHS budget to local healthcare commissioning organisations.

The formula is based on up-to-date information and research, and is revised every two to three years.

In mental health services, changes to the formula that Professor Sutton and colleagues recommended for measuring need were adopted by the Department of Health, resulting in an average change in the mental health budget of £7 million for primary care trusts.

This has had a major impact and led to better support for mental healthcare in the local community.

"To ensure that the NHS budget is allocated fairly, a formula is used. This is based on up-to-date information and research and a new formula is published every 2-3 years."

Matt Sutton / Professor of Health Economics