Figures show cost of NHS in Scotland has doubled since devolution

Administration costs have risen from £334 million in 1998-99 to £747 million last year, according to the information obtained by the Scottish Conservatives.

Since the SNP in 2007 came to power there has been an increase of nearly £100 million.

Conservative public health spokeswoman Nanette Milne said: “At a time when we see the SNP presiding over a postcode lottery in healthcare with regards to specialist nurses and associated health professionals, the public will be disturbed to see that administration costs in the NHS have doubled over the past 12 years.

“In the current economic climate we need to be supporting front-line services instead of wasting money on costly bureaucracy.

“Regardless of what SNP ministers may say, there is no getting away from the fact that administration costs in the NHS are going in completely the wrong direction.

“They have overseen a huge increase since they came to power and there are no signs of it slowing up.

“We have a duty to Scots to not only provide the best possible healthcare but provide taxpayers with value for money.

“This needless and huge spend on administration needs to be stopped and it is vital that steps are taken immediately to start this process.

“That is why I have written to Nicola Sturgeon to ask for the Scottish Government to carry out a review of administration costs and to see where savings can be made in order to help maintain and improve frontline health services.”

In her written response to Dr Milne, Ms Sturgeon said the most recent figures are “not directly comparable with those published in previous years”, as the number of items counted as “administration costs” is now higher.

She said: “There has been a steady increase in the coverage of the costs book in terms of the costs being included as administration costs such that, in 2010/11, 94% of costs were analysed whereas in 1999 to 2000, 62% of costs were covered.

“This means that costs are now analysed which were not previously reported, so the figures are not directly comparable with those published in previous years.

“Due to changes in the way administration costs are reported, for example admin costs for a number of functions such as pharmacy, catering, property maintenance and transport which previously were omitted, are now classified as administration, are another reason why figures are not directly comparable on a year to year basis.”

She also cited a number of other “significant changes” and “exceptional items” that have affected the figures.

A Scottish Government spokeswoman added: “Due to different methods of analysing costs it is not possible to compare figures between years.

“Increases in the costs associated with administrative staff in 2010/11 are due to an increase in NHS Greater Glasgow and Clyde. All other boards have reduced costs or remained static.

“There was an exceptional item in the 2010 accounts of NHS Greater Glasgow and Clyde which means the 2010 and 2011 admin costs are not comparable. Additional items were included in the 2011 admin costs that were not included in the 2010 costs.

“If you adjust for the £25 million relating to NHS Greater Glasgow and Clyde, the overall administration costs for NHS Scotland actually reduce by £7 million in that year.

“The NHS doesn’t stand still. It is currently in a period of transition, as the balance of care shifts towards more community care and shorter hospital stays.

“The shape and size of the workforce reflects that transition and the number of non-clinical administrative staff is reducing.”