This story was first published in digitalhealth.net
Trusts forecast an excess of £2 billion deficit as overspending worsens
The news arrives amid the ongoing controversy concerning NHS regulator, Monitor and the NHS Trust Development Authority’s (TDA) failure to publish their reports regarding the provider sector’s financial performance over the first three months of 2015-16.
According to reports by The Observer, the delay in publishing was an attempt to prevent the forecast from overshadowing the conservative party conference.
Initially, the reports revealed that trusts forecast deficits totalled £2.1 billion for the full financial year. However, updated data for in-year performance suggests trusts’ overspending was even higher than planned.
112 providers reported their year to date financial performance against plans up to the end of July and August. Overall, the group reported a year to date deficit of £995 million against a planned £706 million- 35 per cent worse than planned.
While many foundation trusts were granted ‘stretch targets’ in order to reduce the deficits, separate analysis by HSJ has suggested that even if targets are met, there will be little impact on the overall £2.1 billion deficit.
Richard Murray, policy director of the King’s Fund, said “the trajectory on finance is still resolutely down… Add to that how little organisations think they’ll be able to shave off of their finances… this is extremely bleak reading.”
Chris Hopson, NHS Providers’ chief executive, said: “All trusts are doing everything they possibly can to improve their 2015-16 financial year position – they recognise how important it is for the NHS to stay within its allocated budget, particularly as a four year spending review is finalised.
“Trusts also tell us there is more downside risk than upside opportunity at this point. We are six months through the year and the vast majority of realisable savings were already in, or have now been added to 2015-16 plans.”
A spokesperson for Monitor and the TDA said: “It will come as no surprise to anyone that NHS providers are currently struggling to meet the financial challenge before them. We are currently focused on supporting our organisations to deliver realistic plans for the rest of this financial year.
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