25.02.15
Prolonged slowdown in NHS funding
Source: Richard Murray, Director of Policy at The King’s Fund
Response to the quarterly report on the performance of NHS foundation trusts published by Monitor: The figures published today show that foundation trusts’ financial performance continues to deteriorate, with Monitor expecting an end-of-year deficit of £375m. 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.
The position in the acute sector continues to be particularly difficult, with nearly three out of four hospitals currently in deficit. The prolonged slowdown in funding that the NHS is facing means that even well managed organisations are struggling to avoid significant debt. Emergency support is needed for otherwise sound organisations that are running up deficits as a result of the unprecedented pressures on their budget.
A new health and social care transformation fund should also be established to meet the cost of essential changes to services. This is a big ask in the current financial climate but the money to do this cannot be found from existing NHS budgets.
Re: Foundation trusts deficit increases to £321m