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NHS slipping into deficit again | NHS slipping into deficit again |
(about 18 hours later) | |
The NHS is slipping into deficit once again as hospitals and local community services struggle to balance the books. | The NHS is slipping into deficit once again as hospitals and local community services struggle to balance the books. |
The Department of Health is predicting a £94m shortfall by the end of the 2006-07 financial year, compared to an £18m surplus just three months ago. | The Department of Health is predicting a £94m shortfall by the end of the 2006-07 financial year, compared to an £18m surplus just three months ago. |
Hospitals and primary care trusts, in charge of community services such as GPs, are racking up the biggest debts. | Hospitals and primary care trusts, in charge of community services such as GPs, are racking up the biggest debts. |
But the they are being bailed out by reserves being built up by regional health chiefs in England. | But the they are being bailed out by reserves being built up by regional health chiefs in England. |
TRUSTS WITH BIGGEST DEFICITS Hillingdon PCT (London) - £65.6mQueen Elizabeth Hospital (London) - £37.1mWhipps Cross University Hospital (London) - £33.2mHinchingbrooke Health Care (Cambs) - £29.9mNorth West London Hospitals - £29.7m | |
Strategic health authorities (SHAs), which oversee NHS trusts, have used money from central budgets such as training and public health, as well as taking some of the extra £5.4bn funds earmarked for the health service this year. | Strategic health authorities (SHAs), which oversee NHS trusts, have used money from central budgets such as training and public health, as well as taking some of the extra £5.4bn funds earmarked for the health service this year. |
Hospitals and PCTs finished last year nearly £1.07bn in deficit, leaving the NHS in the red by over £500m once surpluses made elsewhere were taken into account. | Hospitals and PCTs finished last year nearly £1.07bn in deficit, leaving the NHS in the red by over £500m once surpluses made elsewhere were taken into account. |
That deficit was paid off by cuts made to this year's budget. | That deficit was paid off by cuts made to this year's budget. |
But the half-year forecasts show that the NHS still looks like it is racking up deficits despite government promises it would balance by the end of this financial year. | But the half-year forecasts show that the NHS still looks like it is racking up deficits despite government promises it would balance by the end of this financial year. |
Hospitals and PCTs are forecasting a deficit which is almost exactly the same as last year - £1.01bn - amid the wave of job losses and hospitals cuts happening across the NHS. | Hospitals and PCTs are forecasting a deficit which is almost exactly the same as last year - £1.01bn - amid the wave of job losses and hospitals cuts happening across the NHS. |
And this is despite the fact the number of financial hit squads - known as turnaround teams or directors - helping NHS trusts has increased from 18 at the start of the year to 143. | And this is despite the fact the number of financial hit squads - known as turnaround teams or directors - helping NHS trusts has increased from 18 at the start of the year to 143. |
However, the overall deficit is predicted to be £94m as a contingency fund of £350m has been amassed by SHAs, who themselves are predicted to end the year £569m in surplus. | However, the overall deficit is predicted to be £94m as a contingency fund of £350m has been amassed by SHAs, who themselves are predicted to end the year £569m in surplus. |
'Mismanagement' | 'Mismanagement' |
Shadow health minister Stephen O'Brien said: "Labour's mismanagement has put our NHS in this financial mess. | Shadow health minister Stephen O'Brien said: "Labour's mismanagement has put our NHS in this financial mess. |
"Now we see that, despite all their warm words and promises, not to mention extra millions spent on turnaround consultants, Labour are failing to solve the NHS cash crisis." | "Now we see that, despite all their warm words and promises, not to mention extra millions spent on turnaround consultants, Labour are failing to solve the NHS cash crisis." |
Dr Beverly Malone, General Secretary of the Royal College of Nursing, added: "These figures confirm our worst fears. | Dr Beverly Malone, General Secretary of the Royal College of Nursing, added: "These figures confirm our worst fears. |
"They are clear proof that we need a long-term plan to tackle the deficits crisis as a matter of urgency. If not, services will continue to be hit, jobs will continue to be lost and patients will continue to pay the price." | "They are clear proof that we need a long-term plan to tackle the deficits crisis as a matter of urgency. If not, services will continue to be hit, jobs will continue to be lost and patients will continue to pay the price." |
But the Department of Health said it was confident financial balance could be reached by the end of the year, adding SHA's had identified £100m of savings that could be made although these had still to be fully confirmed. | But the Department of Health said it was confident financial balance could be reached by the end of the year, adding SHA's had identified £100m of savings that could be made although these had still to be fully confirmed. |
NHS chief executive David Nicholson added: "Despite these financial challenges, the NHS continues to treat more people than ever before with shorter waits, particularly in areas such as cancer and A&E. | NHS chief executive David Nicholson added: "Despite these financial challenges, the NHS continues to treat more people than ever before with shorter waits, particularly in areas such as cancer and A&E. |
"For those organisations where insufficient improvement has been made, action plans have been agreed with SHAs to ensure that financial performance is improved in line with local plans." | "For those organisations where insufficient improvement has been made, action plans have been agreed with SHAs to ensure that financial performance is improved in line with local plans." |