Monday, August 14, 2006
DoH publishes NHS financial performance
The Department of Health has published the NHS financial performance for the first quarter of 2006-07.
The data shows that:
* the NHS as a whole is forecasting a small surplus for the year - £18m - after application of a £350 million contingency created by the Strategic Health Authorities;
* forecast gross deficits for the year total £883 million compared with £1,227 million in 2005-06;
* 120 organisations are forecasting deficits compared with 174 that returned deficits in 2005-06.
Health Minister Lord Warner said:
"By publishing NHS financial data on a quarterly basis, we are being more open and transparent about NHS accounts than ever before. The Audit Commission recently confirmed that our transparent approach was exposing financial risks that were previously hidden and it was therefore helping the NHS to spot problems earlier and take steps to address them.
"These figures are encouraging news. They show that the NHS is on track to achieve our aim of a net financial balance by the end of the year. Good progress has been made to bring the NHS into balance, and this has been done whilst continuing to maintain good patient care.
"However, there is no room for complacency. It should be recognised that at this point in the year there remains considerable financial risk in some Trusts to be managed to ensure delivery in line with forecast positions. That is why a minority of Trusts are having to take tough decisions about how to bring their financial situation into balance. Even with these tough decisions there is little evidence of a damaging effect on patient services or of significant redundancies.
"There should be no trade-off between improving the quality of patient care and actions to improve financial management. The NHS is consistently delivering better services for patients. Waiting times for operations remain at record lows, accident and emergency departments are faster despite recent increases in demand, and health outcomes for patients across the service are improving.
"We have agreed with the NHS that Strategic Health Authorities can enter into loan agreements with Primary Care Trusts in order to bring the regional health economy into balance. We have been clear that any loans will have to be repaid with interest, and that priority for early repayment will be areas with the greatest health need."
The data shows that:
* the NHS as a whole is forecasting a small surplus for the year - £18m - after application of a £350 million contingency created by the Strategic Health Authorities;
* forecast gross deficits for the year total £883 million compared with £1,227 million in 2005-06;
* 120 organisations are forecasting deficits compared with 174 that returned deficits in 2005-06.
Health Minister Lord Warner said:
"By publishing NHS financial data on a quarterly basis, we are being more open and transparent about NHS accounts than ever before. The Audit Commission recently confirmed that our transparent approach was exposing financial risks that were previously hidden and it was therefore helping the NHS to spot problems earlier and take steps to address them.
"These figures are encouraging news. They show that the NHS is on track to achieve our aim of a net financial balance by the end of the year. Good progress has been made to bring the NHS into balance, and this has been done whilst continuing to maintain good patient care.
"However, there is no room for complacency. It should be recognised that at this point in the year there remains considerable financial risk in some Trusts to be managed to ensure delivery in line with forecast positions. That is why a minority of Trusts are having to take tough decisions about how to bring their financial situation into balance. Even with these tough decisions there is little evidence of a damaging effect on patient services or of significant redundancies.
"There should be no trade-off between improving the quality of patient care and actions to improve financial management. The NHS is consistently delivering better services for patients. Waiting times for operations remain at record lows, accident and emergency departments are faster despite recent increases in demand, and health outcomes for patients across the service are improving.
"We have agreed with the NHS that Strategic Health Authorities can enter into loan agreements with Primary Care Trusts in order to bring the regional health economy into balance. We have been clear that any loans will have to be repaid with interest, and that priority for early repayment will be areas with the greatest health need."
