NHS South East Essex’s chief executive has welcomed Government plans to “fine” hospitals if patients have to be re-admitted within a month of discharge.

Health Secretary Andrew Lansley said the move would be better, for both patients and hospitals. NHS South East Essex is trying to save money by diverting money away from hospital care and into treatment in community as part of its plans to save about £10million.

Andrew Pike, chief executive, said: “The statement from the Secretary of State is consistent with the primary care trust policy of ensuring effective care and seamless services are provided for patients. Also it supports the principle of not paying providers for inadequate or ineffective health provision. The current proposals of the trust to develop its community service more closely with those provided by general practice and Southend Hospital would support a proposal for avoiding re-admission.”

Mr Pike suggested the scheme would need to be carefully worked out before being introduced.

He added: “It is important it doesn’t become too bureaucratic. There are many reasons why patients may be re-admitted within 30 days. However, the principle of paying for effective care and better outcomes for patients is obviously correct.”