Financial turnaround begins for overspending NHS trusts

The health secretary Patricia Hewitt has named the 18 worst overspending NHS organisations.

In a report published yesterday, Ms Hewitt confirmed that teams of financial specialists will be sent to the worst trusts to facilitate a financial turnaround.

The report maintains that the NHS as a whole is broadly financially balanced, with many trusts managing to run at a surplus. However, it confirmed that an external evaluation of NHS finances had identified 62 organisations forecasting significant overspends.

“Despite all the talk of a so-called financial crisis, the projected overspend, at the half-year stage, still accounts for less than one per cent of the total NHS budget,” said Ms Hewiit.

“The organisations that will receive intensive turnaround support account for just three per cent of all NHS organisations but 26 per cent of the total gross projected overspend.”

Aside from the 18 trusts targeted by the “turnaround teams”, first mooted by the department last month, a further 23 trusts will receive financial assistance to help them rectify their financial problems.

It is reported that accountancy firms will tender for the contracts over the next few days.

Ms Hewitt maintained that patient care would not be comprised by the department’s new zero tolerance approach to overspending, arguing that they would seek out the best possible patient care matched by the best value for money.

Surrey and Sussex Healthcare NHS Trust was named as the worst trust, forecasting a deficit of ?41 million, equal to a third of its total turnover.

Spending on the NHS has doubled since 1997 and is set to triple by 2008.

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