07 November 2008
By Paul Dicken
The NHS Confederation has called on foundation trusts to bring forward investment projects to help stimulate the economy after figures showed they had a combined surplus of almost £400m.
Sue Slipman, the director of the confederation's Foundation Trust Network, said: 'Where foundation trusts can bring forward projects that will invest in and boost the local economy, this is something they should consider. In the NHS we do not exist in a bubble; investment of surpluses by FTs in the health sector can and will help local economies at this difficult time.'
The confederation said foundations including Harrogate, Gateshead, University College London Hospital, Bournemouth and Oxleas in southeast London were all investing in expanding and improving services.
Regulator Monitor released the surplus figures in the 2007/08 annual review and consolidated accounts for the foundation trust sector on October 30. They showed that all but two of the 89 foundations in March had recorded a budget surplus. There are now 107 foundation trusts, representing 47% of NHS acute and mental health services.
Monitor chair William Moyes said foundation trusts would be 'exposed to increased financial pressures' along with the rest of the NHS, but had strong boards, good financial management and resources.
'Foundation trusts have built up these surpluses by delivering services more efficiently so that the money can be reinvested in improved patient care,' he said. Trusts should make 'pessimistic assumptions' and drive efficiencies, but also continue to invest in improvements, he added.
The annual review said cash balances of foundation trusts had increased through strong financial performance, increasing efficiency and improved working capital management, as well as delays in capital programmes. Capital expenditure, however, had also increased from last year, with £889m spent on acquiring 'tangible assets'.
Private patient income for all trusts amounted to £165.2m, up from £124m in 2006/07, representing 1.3% of patient-related income for all foundation trusts.
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