Table Of ContentRationalizing  Acute Care  Services
Pauline  Mistry
Managing  Director
Health  Care Division
Oxford  International  Group
First published 1997 by Radcliffe Publishing 
Published 2016 by CRC Press 
Taylor & Francis Group 
6000 Broken Sound Parkway NW, Suite 300 
Boca Raton, FL 33487-2742 
© 1997 Pauline Mistry 
CRC Press is an imprint of Taylor & Francis Group, an Informa business 
No claim to original U.S. Government works 
ISBN-13: 978-1-85775-125-3 (pbk) 
This book contains information obtained from authentic and highly regarded sources. While all 
reasonable efforts have been made to publish reliable data and information, neither the author[s] 
nor the publisher can accept any legal responsibility or liability for any errors or omissions that 
may be made. The publishers wish to make clear that any views or opinions expressed in this book 
by individual editors, authors or contributors are personal to them and do not necessarily reflect 
the views/opinions of the publishers. The information or guidance contained in this book is 
intended for use by medical, scientific or health-care professionals and is provided strictly as a 
supplement to the medical or other professional's own judgement, their knowledge of the patient's 
medical history, relevant manufacturer's instructions and the appropriate best practice guidelines. 
Because of the rapid advances in medical science, any information or advice on dosages, 
procedures or diagnoses should be independently verified. The reader is strongly urged to consult 
the  relevant  national  drug  formulary  and  the  drug  companies'  and  device  or  material 
manufacturers' printed instructions, and their websites, before administering or utilizing any of 
the drugs, devices or materials mentioned in this book. This book does not indicate whether a 
particular treatment is appropriate or suitable for a particular individual. illtimately it is the sole 
responsibility of the medical professional to make his or her own professional judgements, so as 
to advise and treat patients appropriately. The authors and publishers have also artempted to trace 
the copyright holders of all material reproduced in this publication and apologize to copyright 
holders if permission to publish in this form has not been obtained. If any copyright material has 
not been acknowledged please write and let us know so we may rectify in any future reprint. 
Except as  permirted under U.S.  Copyright Law, no part of this  book may be reprinted, 
reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, 
now known or hereafter invented, including photocopying, microfilming, and recording, or in any 
information storage or retrieval system, without written permission from the publishers. 
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and 
are used only for identification and explanation without intent to infringe. 
Visit the Taylor & Francis Web site at 
http://www.taylorandfrancis.com 
and the CRC Press Web site at 
http://www.crcpress.com 
British Library Cataloguing in Publication Data 
A catalogue record for this book is available from the British Library. 
Library of Congress Cataloging-in-Publication Data is available. 
Typeset by Marksbury Multimedia Ltd, Midsomer Norton, Bath, UK
To 
Matthew F McNulty Jr, ScD 
Chancellor Emeritus, Georgetown University Medical Center 
For his extensive contributions to health services management.
Contents 
Preface  Vlll 
1  Summary of changes in the NHS over the past decade  1 
Introduction  1 
The 1990 NHS reforms  2 
The allocation of resources  3 
The impact of contracting for services  4 
The development of competition  5 
The move towards care in the community  5 
The Health Authorities Act of 1995  6 
Towards a primary care-led NHS  7 
Other government initiatives  8 
The trend towards mergers  10 
Summary  12 
References  12 
2  The case for rationalization of acute care beds  13 
Introduction  13 
The international scene  13 
The history of hospital growth and building in the UK  15 
Major reasons for the rationalization of acute care beds  15 
The increase in emergency admissions  22 
The increase in hospitalization  23 
References  24 
3  The future of the acute care hospital and the importance of 
strategic thinking  25 
Introduction  25 
NHS priorities and planning guidance  25 
The future organization and structure of acute care  26 
The CaIman Report on cancer services  29
vi  Rationalizing acute care services 
Responsibility for implementing the future structure  31 
The role of the acute care manager  32 
The case for strategic thinking  33 
Obstacles to strategic thinking  35 
The information required to support strategic thinking  35 
References  36 
4  Understanding the catchment population  37 
Introduction  37 
Defining the catchment area  38 
Verifying the catchment area  38 
Reviewing the population of the catchment area  39 
Health characteristics of the population  41 
Health care needs assessment  43 
Planned changes in the area  45 
Targeting populations outside of the catchment area  45 
Reference  45 
5  Analysis of current patient activity  46 
Introduction  46 
Contracts with purchasers  46 
Total patient activity  48 
Ward analysis  48 
Specialty analysis  50 
Bed census  52 
Audit Commission indicators for monitoring the use of beds  53 
Review of competition  55 
Summary of patient activity  57 
Reference  57 
6  Projecting bed needs  58 
Introduction  58 
Building a hospitalization model  58 
Comparison of beds required with beds available  60 
Projecting bed needs  61 
Scenario planning  64 
Other major factors to consider  65 
Determining beds by the number of patient episodes  67 
Summary  67 
Reference  68 
7  Site and facilities appraisal  69 
Introduction  69 
Single versus multiple sites  69 
Estates' functional content and space utilization  70
Contents  vii 
Site constraints  72 
Condition appraisal  73 
Site services appraisal  74 
Statutory requirements  74 
Location and accessibility  75 
Patient focused care  76 
Future implications for acute care health facilities  78 
Consideration of options  79 
Reference  79 
8  The costs of rationalization  80 
Introduction  80 
The analysis of options  80 
Costing the options  82 
The private finance initiative  85 
9  Public relations, communications, and consultation  87 
Introduction  87 
The role of public relations in hospitals  88 
Internal communications  89 
Openness and clarity  90 
The public consultation process  91 
The need for less but better consultation  92 
The confusion between consultation and patient involvement  93 
References  94 
10  Future uncertainties  95 
Introduction  95 
Alternative health policies  95 
The private sector  98 
Priorities and rationing  99 
Evidence-based medicine  100 
The era of cooperation between competing providers  101 
Conclusion  102 
References  103 
Index  104
Preface 
The management and financing of health care systems throughout the world is 
in a state of flux. Burgeoning demands for health care services resulting from 
greater awareness and higher expectations on the part of users as to the quality 
and  timeliness  of service  provision;  rapid  technology  change  and capital 
intensity; as well as profound changes in demography are putting both public 
and private health care systems under considerable stress. In most developed 
countries expenditures on health care consume between 7-15 per cent of 
national income. Unless improved management and higher efficiency levels in 
the provision of health care services are achieved, present trends suggest that 
adequate and timely health care will become less and less affordable at the 
level of the individual, as well as societies. In some cases health care systems, 
unless radically changed, will break down. 
Growing  demand  for  health  care  comes  at  a  time  when  governments 
confront dramatic resource constraints. With a squeeze on public budgets in 
virtually every country in the world, ways need to be found of de-linking 
health care from total dependence on government financing, in an acceptable 
manner.  No  civilized  society  can  seriously  contemplate  the  complete 
abdication of public responsibility for a basic level of health care; especially 
for the elderly, the infirm, and the poor. At the same time no society can 
ignore the fact that, with public preferences for much lower levels of direct 
and indirect taxation, more and more of the burden of paying for health care 
services will need to pass from the state to private families and individuals. 
That  shift  has  major  repercussions  and  implications  for  how  health  care 
resources are to be allocated and distributed, and how they are to be managed, 
so  as  to  achieve  an  acceptable  degree  of convergence  between  growing 
expectations and actual delivery of services. This book attempts to focus on 
one aspect of that fundamental issue in the UK; the rationalization of acute 
care services. 
The rationalization of acute care services is taking place all over the country 
and in many places is plagued with public opposition and misunderstanding. 
In  the following  chapters the need  for  rationalization  is  discussed  in  the 
context of the NHS reforms and a strategic thinking approach. The processes
Preface  ix 
involved in any exercise in rationalization are outlined from the initial defining 
of the catchment population, planning service levels, determining costs and 
estate  and  capital  implications,  to  handling  public  relations  and  public 
consultation, and dealing with future uncertainties such as  policy changes 
accompanying a possible change in government. 
The text is essential reading for managers and clinicians involved in acute 
care services, non-executive members of boards and trusts, and students of 
health services management. 
If this book makes a small contribution towards an improved understanding of 
one of the major issues being faced in acute care services - the rationalization 
of services - it will have achieved its purpose. 
Pauline Mistry 
August 1996
Description:Rationalization is concerned with making the most effective use of the resources available. In many places where this process is taking place it is plagued with public opposition and misunderstanding. Hitherto rationalization in the acute care sector has primarily been concerned with closing sites c