25.11.14
FTs must get control over staffing costs and finances – Monitor
NHS foundation trusts (FTs) need to get better control over their agency and contract staffing costs, while improving their efficiency through savings, health regulator Monitor has stated.
This comes as the FT sector is forecasting a year-end net deficit of £271m, which comprises of a gross deficit of £53m at 60 trusts (£115m worse than planned), offset by a £260m surplus at 87 trusts (£136m worse than planned).
The sector’s overall financial performance during Q2 deteriorated further with a net deficit of £254m, which was £195m behind plan, Monitor says.
This decline was largely the result of FTs’ heavy reliance on contract and agency staff while under-delivering against their cost improvement plans (CIPs), according to Monitor.
It was stated: “In response to sustained demand and quality pressures, spend on contract and agency staff in Q2 2014-15 was £453m above plan and circa £200m worse than the same period last year. This has an adverse impact on trusts’ ability to deliver their in-year cost savings, as pay costs represents over 50% of the total CIPs.”
It was also revealed that the FT sector again failed to achieve the 90% Referral to Treatment (RTT) target for admitted patients in Q2 2014-15 with only 88.1% of patients starting their inpatient treatment in 18 weeks. This was largely due to FTs responding to the national initiative of a ‘managed breach’ to clear the waiting list backlog. In addition, the year-on-year growth in activity (4%) is lagging behind the growth in referrals (6%), creating further demand pressures within the system.
Monitor added that despite the operational resilience funding which allowed trusts to invest in additional capacity, the performance against the admitted waiting time target remains a major concern, as the median waiting time and the number of patients waiting longer than 18 weeks have both increased. However, FTs have achieved a reduction in those waiting over 52 weeks.
David Bennett, chief executive of Monitor, said: “This is proving to be a tough year for many foundation trusts. Funding is rising, but not as quickly as costs are increasing. These are driven by higher demand for healthcare, reflecting an ageing population and more people suffering complex conditions, and also higher staffing levels.
“Nevertheless, trusts can and need to deliver greater efficiencies while also planning for more significant change over the next 2 to 5 years, so that they can continue providing the quality services that patients value.”
The Foundation Trust Network declined to comment on the statement by Monitor.
Tell us what you think – have your say below or email [email protected]