Overspending NHS trusts face finance hit squads

8 Dec 05
Health Secretary Patricia Hewitt has insisted that NHS trusts should delay operations rather than run further into deficit.

09 December 2005

Health Secretary Patricia Hewitt has insisted that NHS trusts should delay operations rather than run further into deficit.

'Some hospitals would dearly love to get rid of all waits in the next six months but the funding is not there to do it,' she told the Commons health select committee. Some trusts are already reported to have slowed their waiting list work in order to save money.

Hewitt's defence of her robust policy on overspending came as the King's Fund warned that NHS deficits will continue to rise unless the government introduces a flexible financial regime with clear policies on when the Department of Health should intervene.

In a report published on December 7, the think-tank said that the new NHS market would magnify the deficits at some trusts.

Hewitt revealed she would send in hit squads of financial experts to reverse overspending in NHS England after forecasts showed a projected deficit of £623m by March 2006.

In a TV interview on December 6, she said: 'Where there is a management failure, we will put in new, stronger management to get a grip of the problem.'

At the same time, the Healthcare Commission said it would tighten penalties for poor financial management under its new NHS ratings system.

In his Pre-Budget Report, the chancellor said a sustainable level of debt would allow the government to maintain its plan to raise spending on hospitals to £8bn a year in 2008.

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