23.02.15
Foundation trusts’ deficit increases to £321m
The combined deficit of England’s NHS foundation trusts has now reached £321m – five times higher than planned, according to new figures from Monitor.
The regulator’s quarterly monitoring report found that 78 of 147 foundation trusts are now in deficit, of which 60 are acute hospital trusts.
Monitor is now forecasting an end-of-year deficit of £375m for the sector, £104m worse than its prediction in November, against a planned deficit of £16m.
However it also said that its revised deficit forecast may actually be “understated given operational pressures and the fact that previous in year forecasts by [FTs] have been optimistic”.
The reported stated that a “large amount” of financially troubled acute trusts are small or medium in size, which Monitor says raises “the question about their long term financial sustainability”.
A major reason for this rise is spending on agency staff, but Monitor said that foundation trusts were working hard to provide patients with quality care despite operating under “sustained operational and financial pressures”.
Foundation trusts spent £419m more on staff than planned because of the high use of agency staff and made £810m worth of cost savings, which is £210m less than planned.
David Bennett, Monitor’s chief executive, said: “Trusts are working harder than ever to overcome the challenges they face while still meeting patients’ expectations for quality care.
“However, the NHS needs to move rapidly towards more joined-up, efficient models of care if it is to deal with this continuing growth in demand for services.”
Commenting on the quarterly report, Richard Murray, director of policy at The King’s Fund said: “The mounting deficits make an NHS overspend this financial year more likely, meaning that the extra funds that the government made available to the health service for the next financial year may be needed to pay off this year’s deficit.
“If a solution is not found to these mounting financial difficulties, then patients will bear the cost as staff numbers are cut, waiting times rise and quality of care deteriorates.”
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