This paper examines the health economic evidence relating to inpatient care in diabetes in England and assesses the potential for quality and productivity improvements. The following topics are covered:

• Section I examines policy on inpatient care for diabetes, and published evidence on the quality of care and on the potential to improve outcomes and productivity.

• Section II sets out an economic model which estimates absolute and excess expenditure on diabetes, the cost of specialist diabetes inpatient teams, and the potential savings through use of such teams.

• Section III looks in more detail at areas of inpatient care where there may be potential to increase quality and productivity.