Half of FTs behind 2011/12 savings13th July 2012
A significant number of foundation trusts are struggling to meet savings plan targets.
Monitor’s review of the last financial year found that more than half missed targets, with pay costs a major reason behind this.
The document stated: “Anecdotal evidence suggests that demand for acute services has not dropped in line with commissioners’ intentions, potentially constraining trusts’ ability to implement staff reduction plans.”
Pay, which accounts for about 70% of trusts’ costs, was £22.6bn in the FT sector in 2011-12, which was £576m above plan, with £427m of that on agency staff costs.
A survey by HSJ has found that acute foundation trusts have been attempting to cut their pay bill for the current year by £500m as part of overall savings targets of £1.2bn.
The Monitor report goes on to warn: “Failure to deliver appropriate levels of cost savings now is likely to mean more pressure to deliver savings over the next few years. This will become increasingly difficult to achieve.
“Cost improvement programme delivery is more likely to be achieved if foundations work with local stakeholders, especially commissioners, to identify and deliver CIPs. It will become more difficult for trusts to deliver efficiency savings on their own.”
And it warned the savings targets for FTs would be even greater in the years ahead.
Figures show that 15 trusts ended the year in deficit to the tune of £105m, though £43.5m of that was from the Peterborough and Stamford Hospitals Foundation Trust with £54.2m from other acute trusts and £7.3m from mental health trusts.
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Title: Half of FTs behind 2011/12 savings
Author: Mark Nicholls
Article Id: 22338
Date Added: 13th Jul 2012