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Wednesday 23rd May 2018

Significant deterioration in NHS finances

19th November 2009

The financial position of a growing number of health trusts is deteriorating.

Pound Coins

More than a fifth of primary care trusts say that they are overspending.

Finance reports from 33 PCTs in six strategic health authority regions shows an overspend of more than £100m by the end of September.

Unless the overspending is halted, that figure could rise to £230m by the end of the year.

Worst performing trusts were Bury with a £7.5m overspend, or 5% of its allocation, and NHS Hounslow that had overspent by £7.1m, or 4% of its allocation.

NHS Bury interim chief executive Mike Burrows said the trust was facing "very challenging times financially".

It had a number of cost saving schemes in place and hoped to break even by the end of the financial year.

A spokeswoman for NHS Hounslow said it was doing “everything possible” to manage its position with “minimum impact possible on patient care”.

Early indications show that the worst hit regions for spending issues are the North West, with seven out of 24 PCTs overspending; the East of England, with 10 out of its 14 overspending; and London with 11 out of its 31 PCTs overspending.

Most say their financial position is through higher than budgeted for acute activity and the demands of NHS continuing care, which requires PCTs to fund social home care for those with high level needs.

Further uncertainty has been created because it is not yet clear when the payment by results tariff for 2010/11 will be published.


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