A perfect storm: an impossible climate for NHS providers’ finances? An analysis of NHS finances and factors associated with financial performance

March 2016

Sarah Lafond
Thumbnail

Key points

  • Our analysis finds that organisations with a high proportion of their pay bill going on agency staff coupled with more of their income being paid through the PbR tariff rather than negotiated prices are associated with being in deficit. 
  • We also find that poor quality ratings either from CQC or the hospital’s own staff are associated with poor finances. 
  • This is not causation and our analysis can’t tell us if finances cause quality problems, quality problems cause finance problems or, as is most likely, they are bound together in complex inter-connected ways.

This report examines the financial performance of the NHS in England. The main focus is on the finances of NHS providers and the financial position of the commissioners of care (NHS England and clinical commissioning groups).

The report examines commissioners’ budgets and how spending has changed by type of provider, as well as the specific issues facing NHS providers. It also includes the findings of a statistical analysis that set out to identify factors that are most strongly associated with an acute or specialist provider’s deficit.

 

Further reading

Research report

Hospital finances and productivity: In a critical condition?

April 2015

In this report we examine the financial performance of NHS providers, focusing on hospitals.

You might also like...

Press release

Bolder action needed on levelling up agenda

Health Foundation response to the Chancellor's measures to support the UK's recovery from the...

Press release

Rebuilding the nation’s health requires far more than just infrastructure investment

Health Foundation's response to the Prime Minister’s announcement of plans to ‘build back better’ in...

Press release

Legacy of political neglect had left social care fatally exposed before the outbreak began

Health Foundation response to the Association of Directors of Adult Social Services (ADASS) Budget...

Kjell-bubble-diagramArtboard 101 copy

Get social

Over 700,000 patients served by GPs at high risk of COVID-19 could be left without access to face to face GP appoin… https://t.co/wZJJPCuRCn

Follow us on Twitter
Kjell-bubble-diagramArtboard 101

Work with us

We look for talented and passionate individuals as everyone at the Health Foundation has an important role to play.

View current vacancies
Artboard 101 copy 2

The Q community

Q is an initiative connecting people with improvement expertise across the UK.

Find out more