Monitor and the Trust Development Authority have today published their financial figure for the last quarter

Anita Charlesworth, Chief Economist at the Health Foundation, comments: ‘Figures out today confirm NHS hospitals are facing an almost unprecedented financial challenge. Despite the government’s efforts to limit cost pressures, NHS providers in England overspent by £930 million in the first three months of this financial year with more than three quarters of the trusts not being able to balance their books. This is a substantial deterioration compared to the same time last year – when hospitals were just under £400 million in the red. Deficits on this scale are unaffordable and unsustainable. Lack of financial control poses risks for both quality of care and government finances. 

‘Despite warning signs that NHS costs are spiralling, as yet there is no published national plan to improve efficiency and contain costs. Hospitals cannot do this alone. There is an urgent need for action and leadership from the centre. The NHS needs a radically different approach with realistic hospital budgets, enough trained staff, and sustained practical support for hospitals to unlock potential efficiency improvements. The Health Foundation and the King’s Fund have been arguing for an NHS wide transformation programme with ring-fenced funding.  This funding could come from the NHS’s capital budget. Investing in improving efficiency rather than bailouts for overspending is key to a financially sustainable, high quality service for patients and a much better use of taxpayers’ money.’

ENDS

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Mike Findlay
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