Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-17T18:04:27.497Z Has data issue: false hasContentIssue false

Setting Targets for Health Care Performance: Lessons from a Case Study of the English NHS

Lessons from a Case Study of the English NHS

Published online by Cambridge University Press:  26 March 2020

Gwyn Bevan*
Affiliation:
Department of Operational Research, London School of Economics and Political Science

Abstract

This paper examines problems of setting targets for health care performance in which the centre sets a uniform set of targets and levels of performance. The case study examined by the paper is from the system of performance assessment of ‘star ratings’ that was introduced from 2001 by the Department of Health to give each organisation in the NHS in England a single summary score from zero rating to three stars. Star ratings were directed at holding trusts' chief executives to account for the local delivery of national priorities through a process of ‘naming and shaming’, in which Chief Executives of zero-rated organisations were at risk of losing their jobs. This paper outlines the underlying model and its three underlying assumptions: the centre can determine a scoring system to prioritise what matters; failures of performance that are not reflected in the scoring system do not matter; and the advantages of a system of scoring on accountable targets outweigh the disadvantages of various types of gaming responses. This paper examines the application of the model of star ratings to a case study of Primary Care Trusts (PCTs), which are complex organisations with three diverse sets of responsibilities: delivering primary care, commissioning secondary care, and supervising public health. It outlines an alternative model and the issues this raises for governance of health care performance.

Type
Articles
Copyright
Copyright © 2006 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

This is a revised version of a paper presented at the eleventh meeting of the European Health Policy Group, September 2005, University of Perugia and the fourth NIESR Public Service Performance Conference, January 2006, British Academy. I am grateful for comments from Tessa Crilly, Nicholas Mays and Philip Stevens.

References

Alvarez-Rosete, A., Bevan, G., Mays, N. and Dixon, J. (2005), ‘Diverging policy across the UK NHS: what is the impact?’, British Medical Journal, 331, pp. 946–50.CrossRefGoogle Scholar
Anonymous (2005), ‘A&E survey highlights dirt and waiting times’, Health Service Journal, 24 February, p. 7.Google Scholar
Arrow, K.J. (1963), ‘Uncertainty and the welfare economics of medical care’, American Economic Review, 53, pp. 941–73.Google Scholar
Audit Commission (2003), Waiting List Accuracy, London, Stationery Office, www.audit-commission.gov.uk/health/index.asp?catld=english^HEALTHGoogle Scholar
Berliner, J.S. (1988), Soviet Industry from Stalin to Gorbachev, Aldershot, Edward Elgar.Google Scholar
Bevan, G. and Hood, C. (2006) ‘Have targets improved performance in the English NHS?’, British Medical Journal, 332, pp. 419–22.CrossRefGoogle ScholarPubMed
Bevan, G. and Hood, C. (forthcoming), ‘What's measured is what matters: targets and gaming in the English public health care system’, Public Administration.Google Scholar
Bevan, G. and Robinson, R. (2005), ‘The interplay between economic and political logics: path dependency in health care in England’, Journal of Health Politics, Policy and Law, 30, 1-2, pp. 5378.CrossRefGoogle ScholarPubMed
Bird, S.M., Cox, D., Farewell, V.T., Goldstein, H., Holt, T., and Smith, P. C. (2005), ‘Performance indicators: good, bad, and ugly’, Journal of the Royal Statistical Society, Series A, 168, 1, pp. 127.CrossRefGoogle Scholar
British Medical Association (2005), BMA Survey of A&E Waiting Times, London, British Medical Association.Google Scholar
Carter, N., Klein, R. and Day, P. (1995), How Organisations Measure Success. The Use of Performance Indicators in Government, London, Routledge.Google Scholar
Commission for Health Improvement (2003a), NHS Performance Ratings. Acute Trusts, Specialist Trusts, Ambulance Trusts 2002/03, London, The Stationery Office. www.chi.nhs.uk/eng/ratings.Google Scholar
Commission for Health Improvement (2003b), NHS Performance Ratings. Primary Care Trusts, Mental Health Trusts, Learning Disability Trusts 2002/03, London, The Stationery Office. www.chi.nhs.uk/eng/ratings.Google Scholar
Commission for Health Improvement (2003c), What CHI Has Found in: Ambulance Trusts, London, The Stationery Office. http://www.healthcarecommission.org.uk/NationalFindings/NationalThemedReports/Ambulance/fs/enGoogle Scholar
Commission for Health Improvement (2004a), A commentary on star ratings 2002/2003, http://www.chi.nhs.uk/eng/ratings/ratings03.shtml.Google Scholar
Commission for Health Improvement (2004b), What CHI Has Found in: Acute Services, London, The Stationery Office. http://www.healthcarecommission.org.uk/NationalFindings/NationalThemedReports/AcuteAndSpecialist/fs/en.Google Scholar
Commission for Health Improvement (undated) A Guide to Clinical Governance Reviews, London, Commission for Health Improvement.Google Scholar
Dawson, D., Gravelle, H., O'Mahony, M., Street, A., Weale, M., Castelli, A., Jacobs, R., Kind, P., Loveridge, O., Martin, S., Stevens, P. and Stokes, L. (2005), Developing New Approaches to Measuring NHS Output and Productivity, York, York University and London, National Institute of Economic and Social Research, http://www.niesr.ac.uk/pdf/nhsoutputsprod.pdf.Google Scholar
Department of Health. (2002), Improvement, Expansion and Reform: The Next 3 Years. Priorities and Planning Framework 2003 - 2006, London, Department of Health. http://www.dh.gov.uk/PublicationsAndStatistics/Publications/PublicationsPolicyAndGuidance/PublicationsPolicyAndGuidanceArticle/fs/en?CONTENT_ID=4008430&chk=lXp8vHGoogle Scholar
Department of Health. (2005), Healthcare Output and Productivity: Accounting for Quality Change, London, Department of Health. http://www.dh.gov.uk/PublicationsAndStatistics/Publications/PublicationsPolicyAndGuidance/PublicationsPolicyAndGuidanceArticler/fs.en?CONTENT_ID=4124266&chk+5QmbY7.Google Scholar
Evans, R.G. (1987), ‘Public health insurance: the collective purchase of individual care’, Health Policy, 7, pp. 115–34.CrossRefGoogle ScholarPubMed
Evans, R.G., Barer, M.L. and Hertzman, C. (1991), ‘The 20-year experiment: accounting for, explaining and evaluating health care cost containment in Canada and the United States’, American Review of Public Health, 12, pp. 481518.CrossRefGoogle ScholarPubMed
Giddens, A. (1998), The Third Way, Cambridge, Polity Press.Google Scholar
Hart, J.T. (1971), ‘The inverse care law’, Lancet, i, pp. 405–12.Google Scholar
Healthcare Commission (2004), 2004 Performance Rating, London, The Stationery Office. http://ratings2004.healthcarecommission.org.uk/Google Scholar
Healthcare Commission (2005a), NHS Performance Ratings 2004/2005, London, Healthcare Commission, http://ratings2005.healthcarecommission.org.uk/Google Scholar
Healthcare Commission (2005b), Assessment for Improvement. The Annual Health Check. London: Healthcare Commission. http://www.healthcarecommission.org.uk/InformationForServiceProviders/AnnualHealthCheck/fs/en?CONTENT_ID=4017483&chk=ub2qrx (accessed 28 September 2005)Google Scholar
Healthcare Commission (2005c), Primary Care Trust: Survey of Patients 2005, London, Healthcare Commission. http://www.healthcarecommission.org.uk/assetRoot/04/01/93/73/04019373.pdfGoogle Scholar
Healthcare Commission (2005d), Patient Survey Programme 2004/2005. Emergency Department: Key Findings, London, Healthcare Commission. http://www.healthcarecommission.org.uk/NationalFindings/Surveys/PatientSurveys/fs/en?CONTENT_ID=4011238&chk=0bcNSV.Google Scholar
Hood, C., James, O., and Scott, C. (2000), ‘Regulation of government: has it increased, is it increasing, should it be diminished?Public Administration, 78, 2, pp. 283304.CrossRefGoogle Scholar
Hood, C., James, O., Scott, C., Jones, G. and Travers, T. (1999), Regulation Inside Government, Oxford, Oxford University Press.CrossRefGoogle Scholar
Hood, C. and Scott, C. (2000), Regulating Government in a ‘Managerial’ Age: Towards a Cross-National Perspective, London, Centre for Analysis of Risk and Regulation, LSE.Google Scholar
James, O. (2004), ‘The UK core executive's use of public service agreements as a tool of governance’, Public Administration, 82, 2, pp. 397419.CrossRefGoogle Scholar
Klein, R. (1998), ‘Why Britain is reorganizing its national health service—yet again’, Health Affairs, 17, 4, pp. 111–25.CrossRefGoogle Scholar
Kornai, J. (1994), Overcentralisation in Economic Administration, Oxford, Oxford University Press.Google Scholar
Leatherman, S. and Sutherland, K. (2003), The Quest for Quality in the NHS. A Mid-Term Evaluation of the Ten-Year Quality Agenda, London, The Stationery Office.Google Scholar
McGuire, A., Henderson, J. and Mooney, G. (1987), The Economics of Health Care, London, Routledge and Kegan Paul.Google Scholar
Majone, G. (1996), Regulating Europe, London, Routledge.Google Scholar
Mayor, S. (2003), ‘Hospitals take short term measures to meet targets’, British Medical Journal, 326, p. 1054.Google Scholar
National Audit Office. (2001), Inappropriate Adjustments to NHS Waiting Lists, London, Stationery Office. (HC 452). www.nao.gov.uk/publications/nao_reports/01-02/0102452.pdfGoogle Scholar
Nove, A. (1958), ‘The problem of success indicators in Soviet industry’, Economica (New Series) 25, 97, pp. 113.CrossRefGoogle Scholar
O'Mahony, M. (2006), ‘Outputs, inputs and productivity in the NHS’, presentation to 4th NIESR Public Sector Performance conference, British Academy.Google Scholar
Power, M. (1999), The Audit Society: Rituals of Verification, Oxford, Oxford University Press.CrossRefGoogle Scholar
Public Administration Select Committee (2003), Fifth Report. On Target? Government by Measurement (HC 62-I), London, The Stationery Office.Google Scholar
Propper, C. (1995), ‘Agency and incentives in the NHS internal market’, Social Science and Medicine, 40, 12, pp. 1683–90.CrossRefGoogle ScholarPubMed
Propper, C. and Wilson, D. (2003), ‘The use and usefulness of performance measures in the public sector’, Oxford Review of Economic Policy, 19, pp. 250267.CrossRefGoogle Scholar
Secretaries of State for Health, Wales, Northern Ireland and Scotland (1989), Working for Patients, CM 555, London, HMSO.Google Scholar
Secretary of State for Health (1997), The New NHS: Modern, Dependable, Cm 3807, London, The Stationery Office.Google Scholar
Secretary of State for Health (2000), The NHS Plan, Cm 4818-1, London, The Stationery Office.Google Scholar
Secretary of State for Health (2002a), NHS Performance Ratings Acute Trusts, Specialist Trusts, Ambulance Trusts, Mental Health Trusts 2001/02, London, Department of Health. http://www.dh.gov.uk/PublicationsAndStatistics/Publications/PublicationsPolicyAndGuidance/PublicationsPolicyAndGuidanceArticle/fs/en?CONTENT_ID=4002706&chk=dBD1wBGoogle Scholar
Secretary of State for Health (2002b), Learning from Bristol: The Department of Health's Response to the Report of the Public Inquiry into Children's Heart Surgery at the Bristol Royal Infirmary 1984-1995, Cm 5363, London, Stationery Office, http://www.dh.gov.uk/PublicationsAndStatistics/Publications/PublicationsPolicyAndGuidance/PublicationsPolicyAndGuidanceArticle/fs/en?CONTENT_ID=4002859&chk=CPhi%2BI.Google Scholar
Secretary of State for Health (2002c), Delivering the NHS Plan, Cm 5503, London, Stationery Office.Google Scholar
Shaw, M., Smith, G.D. and Dorling, D. (2005), ‘Health inequalities and New Labour: how the promises compare with real progress’, British Medical Journal, 330, pp. 1016–21.CrossRefGoogle ScholarPubMed
Smith, P. (1995), ‘On the unintended consequences of publishing performance data in the public sector’, International Journal of Public Administration, 18, pp. 277310.CrossRefGoogle Scholar
Stevens, S. (2004), ‘Reform strategies for the English NHS’, Health Affairs, 23, 3, pp. 41–4.CrossRefGoogle ScholarPubMed
Timmins, N. (2005), ‘Blair bemused over GP waiting times’, Financial Times, April 30/ May 1, p. 2.Google Scholar
Timmins, N. (2006), ‘How the mighty came to fall’, British Medical Journal, 332, p. 628.CrossRefGoogle ScholarPubMed
Tuohy, C. (1999a), ‘Dynamics of a changing health sphere: the United States, Britain and Canada’, Health Affairs, 18, 3, pp. 114–34.CrossRefGoogle Scholar
Tuohy, C. (1999b), Accidental Logics. The Dynamics of Change in the Health Care Arena in the United States, Britain and Canada, New York, Oxford University Press.Google Scholar
Tuohy, C. (2003), ‘Agency, contract, and governance: shifting shapes of accountability in the health care arena’, Journal of Health Politics, Policy and Law, 28, 2-3, pp. 195215.CrossRefGoogle ScholarPubMed
UK Centre for the Measurement of Government Activity (2006), ‘Public service productivity: health’, Economic trends, 628, pp. 2657. http://www.statistics.gov.uk/downloads/theme_economy/ET628.pdf.Google Scholar
Wintour, P. (2006), ‘Blair faces inquiry into NHS crisis’, The Guardian, 19 April. http://society.guardian.co.uk/publicfinances/story/0.1756465.00.html.Google Scholar