NHS warned to make bigger cuts
HOSPITAL bosses have been warned by a regulator that they may need to make about 50 per cent more efficiency savings than already demanded by health chiefs, because of factors such as higher-than-expected inflation.
Monitor, which oversees NHS foundation trusts and assesses applications for foundation status, has written to local health chiefs after significantly revising its financial assumptions.
It suggested average savings of up to seven per cent a year may be required, compared with the annual four per cent called for by the Department of Health.
The DoH said Monitor’s assessment was the “more pessimistic” of two scenarios set out by the regulator.