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Tuesday 22nd May 2018

Trusts fail financial management

18th October 2006

10072006_nursesstation1.jpgA total of 37 NHS trusts have failed in three key financial areas, according to the Audit Commission.

The commission has expressed ‘particular concern’ about the organisations, which failed on financial management, value for money and financial standing. It also highlighted six trusts judged to have an ‘inadequate performance’ across all five areas examined.

The commission compiled its findings from local auditors for 2005-06 and scored all non-foundation organisations in the category of ‘use of resources’ and examined performance in five areas: value for money, financial management, control, standing and reporting. Organisations were scored one to four. Foundation trusts were assigned points under a similar scheme using the five-point risk rating given to them by Monitor.

Overall, 19 organisations – all now foundation trusts – received the top rating, while 37 caused concern and needed to make ‘significant progress’.

It comes after the Department of Health revealed the true state of the NHS deficit for last year, which had increased £35m on the £512m revealed in June. The difference came following auditing and showed a number of trusts had massively underestimated their overspend including the Mid Essex Hospital Services trust, which went from a predicted £1m surplus to an £11.2m deficit.

Ipswich Hospital trust increased its deficit by £4.6 million putting it a total of £16.7m over budget.

The six trusts judged as inadequate across all areas, receiving a score of one across all five areas were: Brighton & Sussex University Hospitals trust, Hillingdon PCT, Hinchingbrooke Health Care trust, Scarborough and N E Yorks Health Care trust. Surrey and Sussex Healthcare trust and Whipps Cross University Hospital trust.

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Article Information

Title: Trusts fail financial management
Author: Carol burns
Article Id: 938
Date Added: 18th Oct 2006


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