latest health care news


Provider deficit unlikely to be eliminated by end of 2016-17

NHS Providers have told the Commons Health Select Committee that it is ‘unlikely’ trust deficits will be eliminated by the end of 2016-17, and could still total around £500m.

During an evidence session yesterday, Chris Hopson, CEO of NHS Providers, said that it will take longer than a year eliminate the deficit in the provider sector, and that all parts of the health system must play their part.

Last month, Monitor’s financial figures for the latest quarter revealed that the NHS made £741m efficiency savings in April to December 2015, but still had a £2.3bn deficit. They also show that 179 out of 240 NHS providers are reporting a deficit, of whom 132 are acute trusts.

Hopson noted that the net deficit for the provider sector over the first three quarters of this financial year was £2.26bn and could increase to £2.8bn by the end of March. He added that additional funding will help to restore balance, but “our current estimate is that providers will end 2016-17 with a deficit of around £500 million”.

“While the NHS received a good settlement compared to other parts of the public sector in the Spending Review, it is in the middle of the longest and deepest financial squeeze in its history,” said Hopson.

“The ‘front-loaded’ investment over the next two years will help to ease the pressure, but there must be concern over the back-end of this parliament when the funding increases will be much lower.”

He added that over the course of this Parliament, as demand on services and the costs of delivering care outstrip revenue, the financial pressures before providers is “much tougher than before”.

“Providers are being asked to deliver a level of transformational change within a timescale that no other country has delivered,” said Hopson. “All of this means it is vital that providers receive greater support at a national level if they are to realise further savings. Many of these challenges require a ‘whole-system’ response and cannot be resolved by providers alone.”

However, only last month, NHS Improvement stated that NHS providers need to do more work “at pace and scale” to tackle their growing deficits and performance target failures.

Last week it was revealed that a number of NHS providers failed to submit financial activity plans to Monitor in “enough detail” and were asked to resubmit them.


There are no comments. Why not be the first?

Add your comment


national health executive tv

more videos >

featured articles

View all News

last word

A clear strategy for change is needed for health and social care

A clear strategy for change is needed for health and social care

Nigel Edwards, CEO at the Nuffield Trust, argues that it would be a lost opportunity if the next government does not seek to put both health and social care funding on a more sustainable footing. more > more last word articles >

health service focus

View all News


Hoping for cross-organisational change

21/07/2017Hoping for cross-organisational change

Mark Orchard, president of the Healthcare Financial Management Association ... more >
Making community pharmacy integral to STP solutions

21/07/2017Making community pharmacy integral to STP solutions

James Roach discusses his work with the National Pharmacy Association (NPA)... more >


Working collectively to improve cancer outcomes for patients

20/06/2017Working collectively to improve cancer outcomes for patients

Last year, the cancer vanguard established the Pharma Challenge. Rob Duncom... more >
681 149x260 NHE Subscribe button

the scalpel's daily blog

Why diversity and inclusion are critical to leading much-needed change in the NHS

12/07/2017Why diversity and inclusion are critical to leading much-needed change in the NHS

Despite 30 years of investment, the equality and diversity agenda hasn’t moved forward at anywhere near the pace we would have liked. Indeed, many colleagues have lost s... more >
read more blog posts from 'the scalpel' >

healthcare events

events calendar


July 2017

mon tue wed thu fri sat sun
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

editor's comment

13/06/2017Tackling the major challenges facing the NHS

As you will have gathered from the front cover, a theme that runs throughout this edition of NHE is about empowering and involving the workforce in order to deliver innovative change across the system.  Professor Jane Dacre, president of the Royal College of Physicians, highlights on page 16 the importance of sustainability and transformation partnerships/plans (STPs) being implemented and delivered with clinical input at their core.  And the Health Foundation’s... read more >