22.08.12
FTs to face increasing financial difficulties – Monitor
Financial risk is set to increase in the next year, foundation trusts have reported. In Monitor’s ‘Review of foundation trust plans (2012/13)’ FTs forecast increased challenges in the future.
FTs must plan to meet greater demand and stretching healthcare targets, whilst delivering significant savings.
Monitor’s report shows that the financial risk forecast is distributed unevenly across the sector, and specific challenges include pressures in the local health economy and specific cost structures such as expensive PFI schemes.
Income in 2012/13 is forecast to increase by just 1% and then to decline by 1% per year thereafter.
Monitor’s chief operating officer, Stephen Hay said: “In the short term, the sector’s balance sheet is in good shape overall and trusts have planned sufficient cost savings in the year ahead. However, Monitor’s review suggests that an increasing number of individual trusts will face financial difficulties by the end of this period, with different issues affecting different trusts.
“Our experience of reviewing these plans tells us there are indications that the sector’s finances will be weaker by the end of 2015. We expect an increasing number of trusts could be placed in significant breach for financial reasons.
“Particular challenges come from the need to improve the quality of care while delivering considerable savings each year. Foundation trusts are planning to do this without planning to treat fewer patients or reduce the level and quality of care they provide. To achieve this, they will need to look at making significant changes in the way services are delivered to meet patients’ changing needs.”
NHS Confederation deputy chief executive David Stout said: “The report rightly highlights the need for significant changes in the way services are delivered”, to meet significant financial pressure.
Stout suggested this will require further integration of services and an expansion of community-based care, and added: “No change is not in the best interests of patients.”
To view the report, visit: www.monitor-nhsft.gov.uk/home/browse-category/reports-nhs-foundation-trusts/reviews-nhs-foundation-trusts-annual-plans/review
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