The true value of accurate data for NHS finance departments

In modern healthcare, accurate financial data is of huge importance – particularly in NHS finance departments. This data serves as the basis for efficient operations and strategic decisions, and influences everything from budget allocation to patient care. Without it, the solid basis for important decisions in these areas can easily get lost behind fragmented, missing or difficult to access information.

By Jo Hammond, CHC Project Manager at IEG4

NHS Digital states that it “attempts to minimise inaccuracies and the impact of missing and invalid data, but the ultimate responsibility for data accuracy rests with the organisations providing the data.” This means NHS Digital is fulfilling its commitment to comply with the UK Statistics Authority (UKSA). Code of Conduct for Statistics It states: “Producers of statistics and data should clearly explain how they ensure that the statistics and data are accurate, reliable, consistent and up-to-date.”

We know that the importance of accurate data is recognised at the highest levels and that trusts and other NHS organisations must also pay particular attention to it.

When we consider the countless benefits of prioritising good data, we can better understand the central role it plays in maintaining the financial stability of the NHS and its ability to deliver outstanding healthcare services.

So how can accurate data strengthen NHS finance departments, streamline operations and positively impact patient outcomes?

Improved financial management

When working with often tight budgets and keeping track of many competing priorities, it is important to know where to best spend money to avoid areas getting into trouble. Accurate data enables precise forecasting and budgeting and ensures that funds are allocated efficiently. It also supports healthcare teams in long-term financial planning and developing overall strategies. It can be used to identify areas of overspending and inefficiency and enable targeted cost-cutting measures.

In May this year NHSEngland revealed that proposals set out in a joint consultation between NHS England and NICE offer a new route for MedTech developers to raise the funding needed to fast-track “clinically and cost-effective” products for use in the NHS. The accurate cost-benefit analyses and ROI calculations that good data can provide can mean that important tech upgrades can be considered with confidence. We know that continued digitalisation is a priority for the NHS and doing so in a cost-effective and financially sensible way is key to its long-term success.

With NHS finances under such close scrutiny, it is vital that we have data to monitor financial performance against set targets and industry benchmarks, and ensure full compliance. This in turn gives those involved the confidence that money is being prioritised fairly, any technology upgrades are well thought out and are driving the investment that so many areas need.

A well-equipped workforce

The workforce is the lifeblood of our healthcare system, employing over a million people. Employee retention should be a top priority, and that includes ensuring basic needs are met. Payroll and benefits are expected to run error-free, but when financial data is inaccurate, in different locations, or difficult to access, mistakes are easy to happen. Human error is a natural phenomenon, but improved processes like intelligent document processing can mitigate this. In this context, financial system users must complete each required field in one place before they can move on to the next step. This process eliminates gaps in the data and ensures that answers are correct by preventing various fields from being changed for no reason. Many processes of this kind are automated, but there is little point in automating a process without ensuring that inaccuracies cannot occur.

All of this leads to greater operational efficiency and, in turn, a happier, more satisfied and productive workforce.

A happier workforce is more open and able to collaborate on digital platforms. This is especially crucial between finance and other departments and is only possible through shared data and integrated systems.

Patient-centered data management

Of course, improved patient outcomes remain at the heart of digital strategy in healthcare. The idea of ​​patient-centered care underlies many clinical decisions in everyday life, so why shouldn’t this also apply to data management? The ultimate goal is to create the best possible patient experience, and at the heart of that experience is trust.

Accurate data is transparent and provides reliable information to stakeholders, including government bodies, donors and the public – who are ultimately the patients. Ensuring robust data accuracy increases credibility, which is critical to securing the trust of people in the care of the NHS.

The true value of data

The value of high quality data cannot be underestimated. It improves budget management, cost control, resource allocation and transparency, and enables finance teams to work as analysts rather than data inputters. The benefits are undeniable, but how do we ensure the NHS can implement them in its day-to-day data management?

Working with the right digital partner is the first and most important step. As digitalisation advances, data solution providers must prioritise both financial efficiency and time savings, whilst offering automated processes and in-depth analytics. Analytics will help the NHS improve its services, save costs, produce accurate reports and identify long-term trends. In short, the data will be more meaningful.

It is vital for NHS finance departments to operate effectively and sustainably. This is the foundation for sound financial management and ultimately contributes to the financial health and quality of service of the NHS.