Hospitals overspent by £1.6bn new figures show, the Health Foundation reacts

New figures released today by Monitor and the Trust Development Authority reveal both Trusts and Foundation Trusts are facing significant challenges on both finance and operational performance against key national standards at the mid-point of the year.

Anita Charlesworth, Chief Economist at the Health Foundation, comments: “The latest finance data point to the deepening financial crisis facing English NHS providers, with hospitals overspent by £1.6bn just six months in to the year. Four out of five trusts are now in deficit, driven by spiralling agency costs and problems discharging patients.

'Today’s figures confirm the truly dire state of NHS finances. They underline the need for realistic hospital budgets, enough trained staff, investment in prevention to tackle rising demand, and sustained practical support for hospitals to unlock efficiency savings while maintaining quality of care for patients.

'Next week’s spending review needs to address the unprecedented scale of challenge facing the NHS. Additional investment needs to come sooner rather than later and there needs to be dedicated funding to support the changes necessary for a sustainable NHS.

'Funding for hospitals must not come by raiding broader areas of front-line health spending such as public health and training, this would be hugely counterproductive and amount to robbing Peter to pay Paul. Public health and health education budgets cover vital NHS services such as health visiting and junior doctor costs. You get what you pay for. There are choices. The UK already spends significantly less on health and care than most other comparable European countries. We need an efficient health service but a cut price NHS risks damaging patient care.' 

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Mike Findlay

The Health Foundation

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Email: mike.findlay@health.org.uk