17 August 2009

Reality vs "Real Term"

The forthcoming general election - a maximum of nine months away - will generate a great deal of heat about each party's plans to preserve and improve the NHS. I can't imagine that any of them will admit to any plans to reduce spending so that's alright then ... isn't it?

Well, not exactly.

Given the state of the UK economy and the amount of debt, both government and household, that we have finally started to confront, it is more than liley that the spin will be "spending will be maintained "in real terms".

Things to ponder ...

  1. Our population is growing. So maintaining spending means spending less per patient.
  2. Our population is ageing and the older you get, the more you cost. So maintaining spending means there isn't enough to look after the additional elderly.
  3. New and expensive drugs and treatments are constantly being added to a doctor's armoury. So maintaining the spending means there isn't any money to pay for the new stuff.
Spending in real terms is unchanged. Spending per patient is, in reality, reduced and advanced treatments will be rationed if available at all.

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