The latest edition of the twice-yearly NHS Financial Temperature Check, published today, revealed than more than a fifth of finance directors believe the quality of patient services will deteriorate in 2016-17, while one third believe quality will decline further in 2017-18.
Waiting times, access to services and the range of services offered were all singled out as areas of concern.
Paul Briddock, director of policy at the HFMA, said: “Our report confirms that while finance directors are feeling the pressures of the current financial situation, many also feel like short-term gains such as cash injections and non-recurrent savings are merely storing up more problems for the future.”
More than a quarter (28%) of organisations reported a worse year-end position for 2015-16 than was anticipated at the beginning of the year, the report revealed. The provider side felt this particularly acutely, with more than a third (37%) of trust finance directors reporting poorer-than-anticipated finances.
Of the 47% of finance directors reporting better-than-expected performance, this was largely due to non-recurrent revenue generation measures such as asset revaluation.
Finance directors also doubt the ability of their organisations to deliver the control totals set by NHS Improvement. Although 63% of trust finance director respondents had signed up their organisation to delivering the control total, only 60% expect to be able to meet the conditions set.
There is also a lack of confidence about the ability to meet savings plans for 2016-17 among FDs in both trusts and clinical commissioning groups.
In trusts, risks to achieving these plans including spending on agency staff, slippages in costs savings and the impact of financial constraints in the social care sector.
In CCGs, these risks were increases in emergency care activity and increased demand for services.
Briddock called for NHS organisations to work together to address financial and operational pressures. Services should be redesigned so costs are not shunted between sectors.
“Although many see the Sustainability and Transformation plans being key to future sustainability, finance directors highlighted that better leadership and clearer lines of accountability to drive the implementation of plans, are needed.”