Analysis of NHS Cost Drivers and Disparities Refresh (Year 2)

The NHS Cost Drivers and Cost Disparities project aims to help trusts analyse their National Cost Collection (NCC) data to identify variations and disparities in costing that impact productivity. Year 1 of the project was designed to support the Secretary of States desire to be assured that the NHS understanding of its cost base and understanding of cost drivers. The NCC provides some, but not all of the information needed and to address this, a project was undertaken. This used the 2023/24 NCC data which was available at the time of Year 1 project. Year 1 was delivered as part of the Local Cost Collection (LCC)/ Federated Data Platform (FDP) work to enable NHSE to start building in these requirements to future improving the planned output from future cost submissions to support trusts to pinpoint inefficiencies and improve operational performance. It also successfully increased engagement with costing processes at both trust and Integrated Care Board (ICB) levels, supporting productivity improvements in line with the NHS Long Term Plan.