NHS trusts needed bailouts to help balance books

Total of £90m spread among 16 NHS trusts to help them keep on track, says spending watchdog A number of England’s NHS trusts needed bailouts and loans to help balance their books last year, according to a new auditors’ report. Spending watchdog the Audit Commission said that while most trusts were able to balance their books, some needed help. Some £90m was distributed among 16 NHS trusts to help them keep on track, while cash was also shifted from underspending primary care trusts (PCTs) to those that had overspent. The commission said the health service delivered a good financial performance in 2010-11, but trusts will face challenges as they try to make savings demanded by the government as part of its efficiency drive. Of 276 NHS organisations in England audited for Thursday’s report , nine (six in the south-east) were in deficit. This means that overall, the NHS, excluding foundation trusts, was able to deliver a surplus of £1.5bn, the same as the previous year. Nevertheless, almost one in four (24%) NHS trusts and 12% of PCTs received qualified value-for-money conclusions from auditors, meaning there were concerns about issues such as weaknesses in financial management and planning, or trusts needing financial support. The NHS has been asked to save £20bn by 2015 – an average of £5bn, or about 5% of budget every year. In 2010-11, PCTs, NHS trusts and foundation trusts saved £4.3bn, through measures such as increased productivity, limits on pay, and cuts to staffing. But the Audit Commission warned that progress in the future could be more difficult, as some of this year’s efficiencies were one-off savings, and no increased funding will come from central government. “Organisations that have, up to now, managed their finances well will find financial pressure increasing,” the study said. “They will need to continue to deliver high-quality services, without the funding growth of the recent past.” The experts behind the study said savings targets for the current financial year are more ambitious. Andy McKeon, managing director for health at the Audit Commission, said: “It is impressive that the NHS overall performed so well financially last year, even if some organisations struggled. “But there is no room for complacency. Tighter funding, and the need to continue to improve services and implement reforms, will make the next three years much tougher. “NHS organisations will need to make a determined effort to find further recurrent savings while continuing to deliver high quality services.” NHS Confederation deputy director of policy, Jo Webber, said of today’s report: “These figures show that many NHS leaders have got their organisations on a strong footing to achieve the £20bn savings required of them. But they are worried that this could be the calm before the storm. “Many of our members have told us they are expecting the financial situation facing their organisations to be the worst they have ever experienced.” She said the “real test” will be over the next 18 months. A Department of Health spokesman said: “The NHS has performed well in the face of a tough economic climate. But we know the NHS is facing even greater pressures, not least from rising demand and costs. “That is why we need to modernise the NHS – improving choice for patients to drive up the quality of care and improve patient experience. “We are also investing an extra £12.5bn in the NHS to improve the quality of services and safeguard the NHS for future generations.” NHS Health guardian.co.uk

Posted by on August 11, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.