Second NHS trust warns of financial pressures

The Northern Echo: Second NHS trust warns of financial pressures Second NHS trust warns of financial pressures

A SECOND major North-East hospital trust has issued a warning about its finances.

Within a week of the South Tees Hospitals NHS Foundation Trust announcing it has called in specialist consultants to help cut spending, County Durham and Darlington NHS Foundation Trust warned staff that its investment plans could be derailed if productivity and efficiency is not improved.

In an internal bulletin County Durham and Darlington’s chief executive, Sue Jacques, tells staff: “Unless we focus on our quality, productivity and efficiency, our plans for major investments may need to be scaled back.”

Ms Jacques says the financial difficulties facing the South Tees trust, which runs James Cook University Hospital in Middlesbrough and the Friarage Hospital in Northallerton, “is an issue of concern to us as a trust as well as to us all individually as members of the community.”

South Tees issued a warning that it was “facing an extremely tough financial challenge” because of efficiency savings demanded by the Government, increasing pressure from emergency care and an increasingly elderly population.

The Middlesbrough-based trust has already reduced a forecast deficit from £49m to £29m but has called in consultants McKinsey to ensure the trust is not £50m in the red by the end of the following financial year.

Ms Jacques says her trust – which runs Darlington Memorial Hospital and the University Hospital of North Durham - was also under pressure despite ending 2013-14 with a surplus for investment of around £5m.

Over the next two years County Durham and Darlington plans to improve the quality of care it delivers and recruit more permanent clinical staff. In the longer term managers are looking at where they might need to make changes.

In an appeal to staff Ms Jacques says: “It is critical that we collectively focus to ensure that these plans are successfully implemented.”

A spokesman for the Royal College of Nursing’s Northern region said: “The serious funding challenges currently facing individual NHS trusts cannot be seen in isolation. Budgetary pressures at one hospital trust inevitably have a knock-on effect at neighbouring providers. The new way in which services are commissioned and resources are allocated, exacerbates this sort of problem.

“The reality is that, without significant additional investment in front-line care, the NHS is facing a completely unviable financial future. And yet, at the centre, there seems to be an almost wilful neglect of the financial crisis currently facing our trusts.”

Comments (9)

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9:00am Mon 19 May 14

bambara says...

Shows in harsh detail the effects of the Tory cuts on the NHS, the ideological plan of the Tories to cut the NHS to the point where it fails and to privatise piece by piece by the back door.

"South Tees issued a warning that it was “facing an extremely tough financial challenge” because of efficiency savings demanded by the Government"
Efficiency savings in a highly efficient system (We spend only 2/3rds what Germany spend and only 50% what the USA spends as a portion of GDP but are rated above them by the World Health Organisation for the quality of health provision)

“The reality is that, without significant additional investment in front-line care, the NHS is facing a completely unviable financial future. And yet, at the centre, there seems to be an almost wilful neglect of the financial crisis currently facing our trusts.”

"An almost wilful neglect" - No I suspect there is no "almost" about it, the neglect is very much wilful, it is ideology driven by this Tory administration who want to pivatise the health service for the benefit of the rich and who frankly couldn't care less if it cost the lives of ordinary people.

The NHS is not safe in Tory hands.

£95 Billion is lost to this country in tax every year from a combination of fraud and tax evasion yet the Tories concentrate their attention on cutting services for the poor rather than collecting the money stolen by the rich.
Shows in harsh detail the effects of the Tory cuts on the NHS, the ideological plan of the Tories to cut the NHS to the point where it fails and to privatise piece by piece by the back door. "South Tees issued a warning that it was “facing an extremely tough financial challenge” because of efficiency savings demanded by the Government" Efficiency savings in a highly efficient system (We spend only 2/3rds what Germany spend and only 50% what the USA spends as a portion of GDP but are rated above them by the World Health Organisation for the quality of health provision) “The reality is that, without significant additional investment in front-line care, the NHS is facing a completely unviable financial future. And yet, at the centre, there seems to be an almost wilful neglect of the financial crisis currently facing our trusts.” "An almost wilful neglect" - No I suspect there is no "almost" about it, the neglect is very much wilful, it is ideology driven by this Tory administration who want to pivatise the health service for the benefit of the rich and who frankly couldn't care less if it cost the lives of ordinary people. The NHS is not safe in Tory hands. £95 Billion is lost to this country in tax every year from a combination of fraud and tax evasion yet the Tories concentrate their attention on cutting services for the poor rather than collecting the money stolen by the rich. bambara
  • Score: 7

10:44am Mon 19 May 14

Jaga says...

Perhaps the incompetents who run the Trusts should be removed and replaced by people who know what they are doing.

Take the story of Hinchingbrooke Hospital in Cambridgeshire. This was run by incompetents for many years and its care standards were falling year on year. It also had 40 million Pounds of debt. Two years ago, the government let Circle take this failing hospital over. Now Hinchingbrooke has been voted the top in the country for patient care. All services have improved dramatically. It will also be back in the black next year. Needless to say bean-counters others have been removed from the Board, and it it now consists mainly of clinicians who know about hospitals.

I wonder what Labour would say about this?
Perhaps the incompetents who run the Trusts should be removed and replaced by people who know what they are doing. Take the story of Hinchingbrooke Hospital in Cambridgeshire. This was run by incompetents for many years and its care standards were falling year on year. It also had 40 million Pounds of debt. Two years ago, the government let Circle take this failing hospital over. Now Hinchingbrooke has been voted the top in the country for patient care. All services have improved dramatically. It will also be back in the black next year. Needless to say bean-counters others have been removed from the Board, and it it now consists mainly of clinicians who know about hospitals. I wonder what Labour would say about this? Jaga
  • Score: -1

11:19am Mon 19 May 14

Auldgadgey says...

Java
Hitchingbrooke hospital was named as best in the country by Capita, a company with more than a passing interest in privatising hospitals.
The Health Service Journal said that Circle were unlikely to pay off the debt.
The public accounts committee said their aims were "over ambitious and unlikely to be achieved"
So not as rosy a picture as you would have us believe.
Part privatisation by Blair has created most of the financial problems faced by the NHS today, they are being exacerbated by the Tories rush to fully privatise noiw.
The answer is to fully renationalise cutting waste and beurocracy at a stroke.
Java Hitchingbrooke hospital was named as best in the country by Capita, a company with more than a passing interest in privatising hospitals. The Health Service Journal said that Circle were unlikely to pay off the debt. The public accounts committee said their aims were "over ambitious and unlikely to be achieved" So not as rosy a picture as you would have us believe. Part privatisation by Blair has created most of the financial problems faced by the NHS today, they are being exacerbated by the Tories rush to fully privatise noiw. The answer is to fully renationalise cutting waste and beurocracy at a stroke. Auldgadgey
  • Score: 3

11:48am Mon 19 May 14

David Lacey says...

The coalition ring fenced NHS spending. Labour voted to cut it. If you want to know what an NHS run by Labour would look like, just see the destruction they have wrought in Wales.
.
The NHS is not safe in Labour hands.
The coalition ring fenced NHS spending. Labour voted to cut it. If you want to know what an NHS run by Labour would look like, just see the destruction they have wrought in Wales. . The NHS is not safe in Labour hands. David Lacey
  • Score: -2

3:19pm Mon 19 May 14

bambara says...

David Lacey wrote:
The coalition ring fenced NHS spending. Labour voted to cut it. If you want to know what an NHS run by Labour would look like, just see the destruction they have wrought in Wales. . The NHS is not safe in Labour hands.
The Tory led government imposed a 2% year on year cut to the NHS badly masked as "efficiency savings"

The NHS is not "run by Labour" in Wales. The NHS is run by NHS managers, those managers are appointed by the NHS commisioning board. That is done without any politicians other than the various ministers of the government of the time in charge.

The Tories are responsible for the cuts to the NHS budget, both in terms of below inflation rises and enforced "efficiency savings" cuts.
[quote][p][bold]David Lacey[/bold] wrote: The coalition ring fenced NHS spending. Labour voted to cut it. If you want to know what an NHS run by Labour would look like, just see the destruction they have wrought in Wales. . The NHS is not safe in Labour hands.[/p][/quote]The Tory led government imposed a 2% year on year cut to the NHS badly masked as "efficiency savings" The NHS is not "run by Labour" in Wales. The NHS is run by NHS managers, those managers are appointed by the NHS commisioning board. That is done without any politicians other than the various ministers of the government of the time in charge. The Tories are responsible for the cuts to the NHS budget, both in terms of below inflation rises and enforced "efficiency savings" cuts. bambara
  • Score: 2

9:05pm Mon 19 May 14

K. Richardson says...

What odds would I have got on the 1st post being a Cllr. Bambi anti tory rant ? Do you know what £120 billion is ?
How about questioning why, during 13 years of labour misrule, public sector managers convinced the 'gubmint' that they deserved parity with the tax providing private sector management ?
What odds would I have got on the 1st post being a Cllr. Bambi anti tory rant ? Do you know what £120 billion is ? How about questioning why, during 13 years of labour misrule, public sector managers convinced the 'gubmint' that they deserved parity with the tax providing private sector management ? K. Richardson
  • Score: 0

10:44pm Mon 19 May 14

bambara says...

Why wouldn't a manager in a public sector job deserve parity with a tax avoiding manager in a private sector job?
Are you suggesting that the managers in say a financial institution is inherrently worth more than a manager of a substantial public service?

& yes I do know what £120 billion is. It is an awful lot of money. It is enough to pay the entire unemployment bill in the UK for roughly a generation.
It is enough to pay the entire pension bill for roughly 4 years.
It is enough to pay for ALL the services that the tories have cut for the entire 5 years of this government, and to have a good chunk left over to reduce the deficit.
It is enough to account for why the richest 1000 people in the UK have seen their wealth rise by 15% in the last year alone while the majority of the population have continued to get poorer.

So yes I know what £120 billion is thanks.

(And it isn't Cllr bambi, I am not a member of any political party. None of them are sufficiently left wing to attract me.)
Why wouldn't a manager in a public sector job deserve parity with a tax avoiding manager in a private sector job? Are you suggesting that the managers in say a financial institution is inherrently worth more than a manager of a substantial public service? & yes I do know what £120 billion is. It is an awful lot of money. It is enough to pay the entire unemployment bill in the UK for roughly a generation. It is enough to pay the entire pension bill for roughly 4 years. It is enough to pay for ALL the services that the tories have cut for the entire 5 years of this government, and to have a good chunk left over to reduce the deficit. It is enough to account for why the richest 1000 people in the UK have seen their wealth rise by 15% in the last year alone while the majority of the population have continued to get poorer. So yes I know what £120 billion is thanks. (And it isn't Cllr bambi, I am not a member of any political party. None of them are sufficiently left wing to attract me.) bambara
  • Score: 0

6:38am Tue 20 May 14

K. Richardson says...

Actually that's a good point point bambara. You make the old Russian regime look conservative so touche.
We agree that £120 billion is a fair chunk of change so if all you have to do is manage and spend it properly why are 'NHS trusts' going bust left, right and centre ? Unlike private sector management they don't even have to show a profit so are you suggesting that the NHS is well managed ?
It, like a lot of the public sector, is either top heavy, badly managed or, most likely, both.
Actually that's a good point point bambara. You make the old Russian regime look conservative so touche. We agree that £120 billion is a fair chunk of change so if all you have to do is manage and spend it properly why are 'NHS trusts' going bust left, right and centre ? Unlike private sector management they don't even have to show a profit so are you suggesting that the NHS is well managed ? It, like a lot of the public sector, is either top heavy, badly managed or, most likely, both. K. Richardson
  • Score: 0

8:58am Tue 20 May 14

bambara says...

K. Richardson wrote:
Actually that's a good point point bambara. You make the old Russian regime look conservative so touche. We agree that £120 billion is a fair chunk of change so if all you have to do is manage and spend it properly why are 'NHS trusts' going bust left, right and centre ? Unlike private sector management they don't even have to show a profit so are you suggesting that the NHS is well managed ? It, like a lot of the public sector, is either top heavy, badly managed or, most likely, both.
You mean the old Russian regime from before the criminals, despots and oligarchs took control?

Why are NHS trusts going bust? you ask, welll lets see we can consider a number of contributing factors:

1. A 2% cut to their funding every year, year after year instituted by the government.
2. Increased levels of red tape and management imposed on them by the Tories again to facilitate the break up of the service into "trusts" in the first place (a pre-cursor to Tory privatisation)
3. Increased pressure on the trusts due to an aging (and increasing) population.
4. Below inflation funding rises which further compound the impact of the 2% annual cut.

So largely down to government meddling, government cuts and government underfunding.

"Unlike private sector management they don't have to show a profit" - Unlike our banks and major financial services companies you mean?

But then a "not for profit" organisation would not be expected to show a profit, and it would be immoral to look to make a profit from the suffering of the sick and vulnerable.
Note companies like big tobacco & the parasitic high interest loan companies would be expected to show a profit, but then I wouldn't want the management of those companies in charge of the health care of the vulnerable.

NHS - We pay half what the USA does for our health care and the World Health Organisation ranks the UK NHS ahead (and well ahead) of the USA for the quality of the service provided. - So much for the efficiency and quality of private industry.
[quote][p][bold]K. Richardson[/bold] wrote: Actually that's a good point point bambara. You make the old Russian regime look conservative so touche. We agree that £120 billion is a fair chunk of change so if all you have to do is manage and spend it properly why are 'NHS trusts' going bust left, right and centre ? Unlike private sector management they don't even have to show a profit so are you suggesting that the NHS is well managed ? It, like a lot of the public sector, is either top heavy, badly managed or, most likely, both.[/p][/quote]You mean the old Russian regime from before the criminals, despots and oligarchs took control? Why are NHS trusts going bust? you ask, welll lets see we can consider a number of contributing factors: 1. A 2% cut to their funding every year, year after year instituted by the government. 2. Increased levels of red tape and management imposed on them by the Tories again to facilitate the break up of the service into "trusts" in the first place (a pre-cursor to Tory privatisation) 3. Increased pressure on the trusts due to an aging (and increasing) population. 4. Below inflation funding rises which further compound the impact of the 2% annual cut. So largely down to government meddling, government cuts and government underfunding. "Unlike private sector management they don't have to show a profit" - Unlike our banks and major financial services companies you mean? But then a "not for profit" organisation would not be expected to show a profit, and it would be immoral to look to make a profit from the suffering of the sick and vulnerable. Note companies like big tobacco & the parasitic high interest loan companies would be expected to show a profit, but then I wouldn't want the management of those companies in charge of the health care of the vulnerable. NHS - We pay half what the USA does for our health care and the World Health Organisation ranks the UK NHS ahead (and well ahead) of the USA for the quality of the service provided. - So much for the efficiency and quality of private industry. bambara
  • Score: 0

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