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Management Consultant Skills Cost Public Sector £3bn


The cost of using management consultants in the public sector has jumped by 23% in 12 months, new figures reveal.

The NHS has caused much of this increase, the Management Consultancies Association (MCA) reports.

The bill for the health service leapt from £221m to £998m over the past year as trusts hired private sector advisors to help them organise their finances.

Eighteen hospitals facing the worst financial difficulties have been employing “turnaround teams” from large accountancy firms.

KPMG and Deloitte are among the companies used to aid debt-ridden health organisations.

The NHS received a £1.27m bill from McKinsey and Co for 2005-2006, the Times reports.

A spokesman for the Department of Health said the figures should be put into perspective.

“We don’t collect figures on how much the NHS spends on consultants, but any figure should be looked at in context. The budget is over £70bn and the NHS is one of the largest employers in the world.

“However, we are always looking at how the NHS can do things better collectively. For example, targeted support from turnaround teams is helping trusts to address their finances, and this will allow us to build up a bank of expertise within the NHS.”


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