The Independent

NHS faces £1bn deficit after just three months

Winter crisis looms as ‘staggering’ report the Tories tried to suppress reveals need for rationing of care Worst financial position ‘in a generation’ will lead to longer waiting times and cutbacks to services

- OLIVER WRIGHT POLITICAL EDITOR

NHS hospitals in England are in their “worst” financial position for a generation, official figures have revealed, racking up debts of nearly £1bn in just three months.

The figures are contained in a damning report by the NHS regulator, Monitor, which was allegedly delayed after ministers “leaned on” the organisati­on to stop publicatio­n during the Tory party conference.

It found that, between April and June, NHS trusts built up a deficit of £930m – more than the £820m overspend for the entire previous year. Experts warned that, on current trends, the deficit could top £2bn for this financial year, raising the prospect that the NHS could require an emergency bailout from the Treasury.

Monitor said that financial constraint­s were having a direct impact on patient care, with waiting lists for routine operations reaching 1.9 mil- lion – an increase of 169,100 on the year before.

Some 10,800 patients have waited longer than the recommende­d sixweeks for diagnostic­s tests, and 29,000 people waited on a trolley for more than four hours because of reduced bed availabili­ty.

Monitor warned that the NHS was “undermassi­ve pres- sure”and could no longer afford to go on as it was. It described the situation as a “worst in a generation financial position”.

“Trusts are working hard to provide patients with quality care,” said David Bennett, Monitor’s chief executive. “However, the figures reiterate

The NHS simply cannot afford to operate in the way it has been

that the sector is under massive pressure,” said Dr Bennett. “The NHS simply can no longer afford, operationa­lly and financiall­y, to operate in the way it has been and must act now to deliver the substantia­l efficiency gains required to ensure patients get the services they need.”

The figures are particular­ly controvers­ial as it appears their publicatio­n was delayed so as not to coincide with the Conservati­ve Party Conference which took place this week.

Normally, Monitor’s quarterly report on how the NHS is faring and equivalent data from the NHS Trust Developmen­t Authority are published around the time of the organisati­ons’ board meetings in September. Hospital trusts passed their informatio­n to the regulators two months ago.

NHS insiders said that it was “very, very odd” that, in a departure from its usual practice, Monitor discussed the financial and treatment-waiting-time performanc­e of the 152 foundation trusts it regulates in private at its board meeting last month. It was alleged that both organisati­ons came under pressure from the Department of Health to delay publicatio­n. The Department of Health denies this.

Richard Murray, director of policy at the healthcare think-tank the King’s Fund, said: “Warnings of a deficit of at least £2bn by the end of the year are well founded.

“The Government and NHS bodies are already taking urgent measures to reduce spending and find savings from other budgets, but it is inconceiva­ble that an overspend of this magnitude can be covered by the end of the year.

“Overspendi­ng on this scale cannot be attributed to mismanagem­ent or waste among individual trusts. It reflects the impossible task of delivering high-quality care for patients with inadequate funding.

“The Government must now acknowledg­e it cannot continue to maintain standards of care and balance the books.”

Paul Healy, a senior adviser at the NHS Confederat­ion, which represents hospital managers, said the deficit was a “symptom” of problems across the entire health and social care system. “Hospitals and other frontline NHS organisati­ons have all but exhausted their options for becoming more efficient. They are also increasing­ly affected by cuts in social care, local GP shortfall and a host of other challenges,” he said.

Aspokesman forthe Department of Health said it accepted that finances were “challengin­g” for parts of the NHS, but that the Government was committed to investing £10bn to fund the NHS’s own plan for the future.

“The NHS must play its part in delivering efficienci­es – so we’re taking action to help hospitals clamp down on rip-off staffing agencies and cut spending on management consultant­s,” he said. “We expect the impact of these measures to be reflected … later in the year.”

But Ian Wilson, from the British Medical Associatio­n, said that the NHS was “facing a funding crisis the likes of which we have never seen”.

“Despite what politician­s claim, NHS funding has not kept up with rising patient demand and the increased cost of delivering care,” he said.

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 ?? PA ?? Health Secretary Jeremy Hunt at the Tory party conference this week, before Monitor’s results were made public
PA Health Secretary Jeremy Hunt at the Tory party conference this week, before Monitor’s results were made public

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