Health care managers' financial skills: measurement, analysis and implications

In the UK, the National Health Service (NHS) has undergone a period of dramatic structural change, leaving many managers fulfilling roles that they have not been specifically trained to undertake. Inadequacies in the financial skills of NHS managers, in a quasi-competitive environment, can have serious functional repercussions, many of which have been reported in the press. This paper addresses the measurement of the level of financial literacy of NHS managers drawn from two district health authorities. The method of measurement of financial skills and the choice of sampling method pose significant problems for researchers in this area. This study indicates that the general level of financial awareness of managers is relatively low. The potential consequences of these shortcomings are discussed together with the opportunities of redressing the situation in the short-and medium-term.