All parties must play their part to keep hospital services financially sustainable
15 March 2016
- The Public Accounts Committee report says the target for trusts to make 4% efficiency savings across the board is "unrealistic" and better data is needed for more informed savings and efficiency targets.
- The report highlights that the Department of Health, NHS England and NHS Improvement have not taken action soon enough to keep trusts in financial balance.
- We say the report confirms what our members have been saying for the last 18 months: the financial crisis in NHS hospitals and other providers is due to the fundamental mismatch between what NHS providers have been asked to deliver and the resources they have been given.
The Public Accounts Committee has today published Sustainability and financial performance of acute hospital trusts.
The report highlights that the financial health of NHS foundation trusts and trusts has significantly worsened in the last three financial years, adding that arm's length bodies have not taken action soon enough to keep trusts in financial balance.
The committee recognises the challenge of achieving financial and service sustainability when demand is rising and budgets are tight, and acknowledges that ongoing effort of NHS England and NHS Improvement to find solutions.
The PAC report confirms what our members have been saying for the last 18 months: the financial crisis in NHS hospitals and other providers is due to the fundamental mismatch between what NHS providers have been asked to deliver and the resources they have been given.
The committee makes six recommendations, which include calling on the Department of Health, NHS England and NHS Improvement to set informed and realistic targets for providers to make efficiencies.
Responding to the report, NHS Providers chief executive Chris Hopson said:
"This report confirms what our members have been saying for the last 18 months: the financial crisis in NHS hospitals and other providers is due to the fundamental mismatch between what NHS providers have been asked to deliver and the resources they have been given. It is not a function of the performance of individual foundation trusts and trusts.
"Therefore, we need corresponding system-wide action to help get all frontline NHS providers - including providers of ambulance, mental health and community care - out of this crisis."
Chris added that the report helpfully identifies that to support truly sustainable services, we need to change our approach for tackling financial deficits in providers.
See the full press statement.