New review highlights methods for NHS hospitals to save money and enhance care

The government has welcomed the findings of a new report from Lord Carter highlighting ways for NHS hospitals to reduce their spending while still improving care.

Lord Carter's review assessed hospitals across England, as well as looking at healthcare systems abroad, including in the US, Germany, Australia, Italy and France.

Key problems highlighted by the Carter Review included unwarranted variations in running costs, sickness absence, infection rates and prices paid for supplies and services, which underlines the need for better collaborative working and standardised procedures.

It was estimated that by addressing these issues and becoming more transparent, hospitals could save up to five billion pounds a year by 2020-21, while ensuring floor space is better used and care quality improves.

Lord Carter also estimates that even a one percent improvement in staff productivity will save the NHS 280 million pounds a year.

Health secretary Jeremy Hunt said: "This groundbreaking review will help hospitals care for patients, making sure every penny possible is spent on frontline patient care and bureaucracy is slashed so doctors and nurses can concentrate on caring."