By Vivienne Russell | 25 November 2014
Monitor has urged NHS foundation trusts to improve control of their contract and agency staffing costs after finding that they had spent double what they planned between April and September.
The regulator said the sector as a whole was projecting a deficit of £271m at the end of the current financial year. This comprises a gross deficit of £531m at 60 trusts (£115m worse than planned), offset by a £260m surplus at 87 trusts (£136m worse than planned).
Spend on contract and agency staff was £831m, more than double the £377m initially projected.
Foundation trusts had also missed some key waiting time targets for accident & emergency, routine surgery and cancer services between July and September, although they had also treated 200,000 more patients than they did a year ago.
Monitor chief executive David Bennett said: ‘This is proving to be a tough year for many foundation trusts. Funding is rising, but not as quickly as costs are increasing. These are driven by higher demand for healthcare, reflecting an ageing population and more people suffering complex conditions, and also high staffing levels.
‘Nevertheless, trusts can and need to deliver greater efficiencies while also planning for more significant change over the next two to five years, so that they can continue providing the quality services that patients value.’
Monitor’s report on the performance of foundation trusts also revealed that trusts made £492m in cost savings, £126m less than planned. They spent £854m on items such as new facilities and estates, £357m less than planned.
Twenty-seven trusts (18% of the sector) were subject to enforcement action because of governance and performance concerns.
