Magazine article Public Finance

NHS Trusts' Finance Regime Faces Reform

Magazine article Public Finance

NHS Trusts' Finance Regime Faces Reform

Article excerpt

The Department of Health has indicated that it wishes all NHS trusts to move towards the more market-orientated financial system currently experienced only by foundation trusts.

The move follows an Audit Commission review of the NHS financial management and accounting regime in July, which found it was no longer suitable for the new, reforming NHS.

The DoH is preparing to give its full response to the commission's report in the autumn.

But a spokesman said: 'During the course of 2006/07 we are introducing a new transparent financial regime for capital investment to ensure that NHS trusts generate sufficient cashflow to finance the running costs of new buildings and equipment.'

He said draft guidance on capital investment would be issued to strategic health authorities this month and a new system would be fully implemented in the next financial year. He added: 'The changes will give all NHS trusts an incentive to improve their financial performance.'

A spokeswoman further commented that recent media speculation that the new approach would mean less capital investment was not necessarily correct. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.