Experts predict cost of reorganising NHS could reach £3bn

(Friday, July 16, 2010)

Analysts are warning that the costs of implementing Andrew Lansley's health reforms will spiral, as the BBC revealed that nearly £1.7bn has been set aside this year alone for reorganisation.

The amount is more than seven times what the NHS aims to save on management.

One expert writing in the British Medical Journal estimated that the total cost of the reorganisation could be between £2bn and £3bn.

And Professor Kieran Walshe, from Manchester Business School, said there was no guarantee that the changes would improve performance or lead to better care for patients.

Karen Jennings, of Unison, said spending on the changes could get out of control.

'The speed of these changes means that the money set aside for the reorganisation will spiral,' she added.