NHS’s financial performance praised by Audit Commission

1 Oct 09
The financial performance of NHS organisations in England is good overall and improving, according to auditors
By Helen Mooney

1 October 2009

The financial performance of NHS organisations in England is good overall and improving, according to auditors.

The Audit Commission found that only a handful of trusts had failed to meet the minimum standards this year. This was announced in its annual Auditors’ Local Evaluation scores for NHS trusts and the new Use of Resources assessment for primary care trusts on October 1.

Most NHS trusts were performing well, with a few reaching the highest rating, the commission said. However, nine organisations had failed to meet minimum standards overall, seven of which had failed to do so for the past four years. The figures do not include the financial performance of NHS foundation trusts.

England’s 152 PCTs had, on average, achieved well on the Use of Resources assessment, but none was rated excellent. Eight PCTs failed to meet minimum standards in one or more parts of the assessment.

Andy McKeon, the Audit Commission’s managing director of health, said: ‘It’s reassuring that most NHS trusts and PCTs have got better at managing their money.’ But, he added, there was ‘room for improvement’ and some hospitals ‘must act urgently to reach minimum standards in the way they budget and spend’.

Nigel Edwards, policy director at the NHS Confederation, said ‘efforts are being made to ensure all aspects of performance continue to improve’.

He added: ‘In some cases this involves addressing long-standing problems in the local health economies including through management and clinical reorganisation.  Even where good plans are in place it may take time to achieve change, during which time good-quality leaders will need support and continuity to turn around performance.’

Nine NHS trusts in England were unable to meet minimum standards in 2008/09 (seven in London, one in the North West and one in South Central). Of those nine, seven (in bold) have failed to meet minimum standards overall in each of the four years of the ALE assessment – this is largely due to long-standing financial issues; six of the seven are in London. These were:

Barking, Havering and Redbridge Hospitals NHS Trust
Bromley Hospitals NHS Trust
Buckinghamshire Hospitals NHS Trust
North West London Hospitals NHS Trust
Queen Elizabeth Hospital NHS Trust
Queen Mary’s Sidcup NHS Trust
Trafford Healthcare NHS Trust
West Middlesex University Hospital NHS Trust
Whipps Cross University Hospital NHS Trust

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