‘Let hospitals write off billions of debt’

HOSPITALS in England could have their debts wiped because they are very unlikely to ever repay them, a top NHS manager said.

NHS trusts in England, which predominantly run hospitals, had previously been threatened with closure for overspending their budgets.

But ian Dalton, the new chief executive of NHS improvement, which oversees trusts, said the government should con- sider writing off many of their debts. He told the Health Service Journal that the new long-term financial plan for the NHS offered chances to start again.

‘i think we have to have a serious look at that (writing off debts),’ he said. ‘the realistic prospect of that being repaid seems deeply unlikely, so i think we’ll absolutely have to look at that as part of the overall financial architecture we have to consider.’

NHS trusts have increasingly struggled to balance the books amid soaring demand and austerity measures.

in 2011, only 5 per cent of 234 providers overspent their annual budgets but by 2015/16, 66 per cent were in deficit as a slowdown in NHS funding took its toll. according to year- end accounts for 2017-18, NHS providers owed the Department of Health more than £11billion, up from £2.9billion in 2015.

Mr Dalton also suggested the current annual hospital budgeting system will be replaced under a ten-year plan to be agreed with ministers later this year. it follows the government pledge that the NHS England budget would rise by £20.5billion in real terms by 2023-24.