Poor management is costing West Midlands hospitals more than #124 million, the Department of Health claimed today.
Minister said health trusts could save money simply by keeping patients in hospital for a shorter time, while they also claimed clinics "waste valuable hospital bed space" by admitting patients on the day before an operation.
And they said hospitals should perform more 'day case' operations where patients are not given a bed at all.
The claims were made following a series of job cuts at hospitals across the region, as managers struggle to reduce budget deficits.
The Government has come under fire from Conservatives, who launched a campaign accusing the Chancellor, Gordon Brown, of being responsible for the cuts.
But Ministers have argued that the redundancies are partly a result of poor management in health trusts. They also point out that NHS spending has increased significantly since 1997 and argue that job losses are partly a result of changes designed to provide more services locally.
According to the Department of Health, West Midland hospitals could save #84,103,000 by reducing the length of patient stays.
Sandwell and West Birmingham Hospitals NHS Trust, which runs City Hospital in Birmingham, could save #10,398,000 this way, the report said. The figures were calculated by comparing hospitals with the top performers elsewhere.
University Hospitals Coventry and Warwickshire NHS Trust, which runs Coventry's Walsgrave Hospital, could save #11,591,000, according to the report.
The region's health services could save another #39,323,000 by reducing the number of pre-operative bed days. This is the practise of admitting patients to hospital the day before an operation is due to take place. The report said this "wastes valuable hospital bed space and increases costs".
The worst offenders are Worcestershire Acute Hospitals NHS Trust, which could save #5,412,000, and University Hospitals Coventry and Warwickshire NHS Trust, which could save #59,975,000.
Another #1,287,000 could be saved by increasing the number of surgeries performed as day cases, so that patients don't use a hospital bed at all.
This includes #174,000 at Worcestershire Acute Hospital NHS Trust and #155,000 at Dudley Group of Hospitals NHS Trust, the report said.
Across the country as a whole, health services could save a remarkable #2.2 billion if they were better managed, according the Department of Health.
This includes savings from admitting fewer emergency patients if community health care for conditions such as diabetes and asthma were improved.
A spokeswoman for Sandwell and the West Birmingham Hospitals NHS Trust, one of the trusts highlighted in the report, said: "We haven't seen this report and we are looking forward to seeing what we can learn from it.
"We are aware that our length of stay can come down and we aim to treat more patients as day cases."
Health Minister Andy Burnham said: "Productivity is about working smarter, not harder – and improved efficiency will deliver both better patient care and better value to the tax payer. With record investment and a programme of reform delivering improvements to patients – waiting times at their lowest ever, improving access to cancer treatment, and increasing choice for patients across a range of areas – it is only right we work with the NHS to improve productivity."
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