Financial sustainability of NHS bodies
Closed
What the inquiry looked at
“This will be the third annual report by the NAO on the financial sustainability of the NHS, which continues to face very severe financial pressures while undergoing significant structural changes. In 2013-14 responsibility for commissioning services from NHS trusts and NHS foundation trusts transferred from Primary Care Trusts and Strategic Health Authorities to newly-created bodies: In 2013-14, the Department of Health allocated £95.2 billion to NHS England to pay for NHS services. The largest proportion was spent by 211 new clinical commissioning groups to buy services from 98 NHS trusts, NHS Direct and 147 NHS foundation trusts. NHS England directly commissioned £13.4 billion of specialised treatment, such as organ transplants and new drug therapies. Monitor continues to regulate NHS foundation trusts, and another new body, the NHS Trust Development Authority, supports NHS trusts that have yet to achieve foundation status. In 2013-14, NHS bodies achieved a net surplus of £722 million, made up of an £813 million underspend by NHS England and clinical commissioning groups, and a £91 million net deficit in NHS trusts and foundation trusts. This is a third of the £2.1 billion net surplus achieved in 2012-13. This inquiry will examine how the Department of Health, working with NHS England, Monitor and the NHS Trust Development Authority, will relieve financial pressure in the NHS, challenge oversight arrangements and work on achieving strategic change. Further information National Audit Office report: Financial sustainability of NHS bodies Chair's statement: Financial sustainability of NHS bodies”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The financial health of NHS bodies has worsened in the last two financial years. The overall net surplus achieved by NHS bodies in 2012–13 of £2.1 billion fell to £722 million in 2013– 14. The percentage of NHS trusts and foundation trusts in deficit increased from 10% in 2012–13 to 26% in 2013–14. Monitor found that 80% of foundation trusts that provide acute hospital services were reporting a deficit by the second quarter of 2014–15. NHS England, Monitor and the NHS Trust Development Authority recognise that radical change is needed to the way services are provided and that extra resources are required if the NHS is to become financially sustainable. The necessary changes will require further upfront investment. Present incentives to reduce A&E attendance and increase community based care services have not had the impact expected. New incentives and strong relationships are needed to promote the more effective collaboration necessary for delivering new models of care.
What the government said
No government response is linked to this report.
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 14 October 2014 to its close on 26 March 2015.
- Oral evidence 19 Nov 2014
- Report 3 Feb 2015
What it recommended
The committee's recommendations are not listed here yet. Read them in 35th Report - Financial sustainability of NHS bodies ↗ on parliament.uk.
Evidence
Oral evidence sessions 1
- 19 Nov 2014No witnesses recordedparliament.uk ↗