Early forecasts show a tiny surplus for NHS in England
Early financial forecasts (PDF 520K) for the NHS in England published
by the Department of Health last week show a surplus of £18m for
2006–07
after application of a £350m contingency created by strategic health
authorities. The total budget for the year is more than £80bn.
But the 120 NHS organisations that expect deficits are forecasting a
total gross deficit of £883m between them. This compares favourably
with last year’s total gross deficit of £1,227m incurred
by 174 NHS
organisations.
Health minister Lord Warner said that the forecast showed that the NHS
is on track to achieve financial balance by the end of the year. However,
he warned: “There should be no trade-off between improving the
quality of patient care and actions to improve financial management.”
SHAs have been authorised to make loan agreements with primary care trusts
in order to bring regional health economies into balance, but these loans
will have to be repaid with interest.
Unexplained variations A King’s
Fund briefing published earlier this month found variations in primary
care trust spending that are only partially explained
by variations in local populations. This leaves unanswered questions, the briefing
says, about why PCTs reach different decisions about their spending priorities
and whether variations have adverse effects on equity and efficiency. For example,
Islington PCT spent seven times as much per head on mental health services in
2004–05 as Bracknell Forest PCT. Across England, there is a four-fold variation
in spending on cancer, a three-fold variation on circulatory diseases and an
eight-fold variation on musculoskeletal problems. |
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