In light of the comment "Reducing spending by £165bn is notionally achievable by abolishing both the state pension and the NHS", it can be argued that reducing spend considerably is viable through asset management. The NHS Confederation report reveals that the health service will face the most severe and sustained financial shortfall in its history after 2011. With added compliance pressure and predicted demand for annual savings of 6% for the years 2011-2014 it is critical that controls are imposed to improve performance, maximise resource utilisation and minimise mistakes relating to several £100m of assets. This will not only satisfy auditors and help meet the Darzi-led demands for greater efficiencies but also reduce the annual £650 million litigation claims – often a result of poorly-maintained equipment. But imposing this control is far from simple. Assets are distributed across each hospital – and GP surgery – and managed by different departments each with its own asset management system, resulting in data duplication and inaccuracy. Furthermore, medical equipment is highly mobile and often leaves the premises on loan to patients. Replacing disparate systems with a single, integrated asset register – that not only holds the capital asset information for the finance team but also service records and histories – enables Trusts to not only assess asset condition and recommend maintenance but also determine whether assets are meeting the required performance levels, costing too much in repairs or failing to contribute to the overall business strategy. By providing each department with a customised view of the single asset register, a Trust can achieve centralised control whilst delivering the cost savings required to meet the forthcoming years of stringent financial control. Karen Conneely, Real Asset Management