25.07.13
‘Fundamental change’ needed for further efficiency savings
The upcoming recruitment of 10,000 more clinical staff will help raise the quality of care for foundation trusts, Monitor’s annual review of FT plans shows.
By 2013/14, FTs will recruit 1,134 permanent consultants, 1,273 junior doctors and 4,133 nurses and midwives to improve performance on A&E waiting times. The move will cost an estimated £500m and will be financed through last year’s surplus.
The review also suggests that ongoing efficiencies are becoming harder to deliver and warns that some individual trusts are likely to struggle with continued savings.
Dr David Bennett, chief executive of Monitor, said: “We are pleased the sector is investing some of its surplus in increasing resources to improve patient care and hope this will relieve some of the operational pressure the NHS is currently facing.”
Stephen Hay, managing director of Provider Regulation at Monitor, said: “In the short term, the sector’s balance sheet is in reasonably good shape overall, but we know that the number of FTs in financial distress has increased, as has the number struggling to meet operational demands.
“However, the outlook on overall funding is uncertain and the spending review has confirmed that financial pressures will increase beyond 2015/16. Our review now suggests the balance of longer term risks has shifted to the downside.
“The sector has a good track record of forecasting its performance in the first year of its annual plans, but its projections for years two and three appear optimistic. In view of this risk, Monitor will enhance its scrutiny of high risk areas to enable us to take early action if necessary.
“Given that traditional cost saving opportunities appear increasingly to be depleted, one way of addressing financial pressures in the medium term is to deliver more fundamental change.
“There are significant opportunities to drive productivity and improvements for example through innovation; and unless FTs start to deliver this fundamental change now there is no guarantee the sector will be as resilient in the future.”
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