Magazine article Public Finance

NHS Trusts with Total £186M Deficit Could Get Extra Funds

Magazine article Public Finance

NHS Trusts with Total £186M Deficit Could Get Extra Funds

Article excerpt

Seventeen indebted NHS trusts whose income was capped under the transition to payment by results are now eligible for additional financial support in 2OO7/08, the Department of Health has said.

The trusts reported a combined deficit of more than E186m in 2005/06, with over half forecasting a deficit in 2006/07, eight of them more than 5% of annual turnover. A further ten trusts whose income was also capped yet who have not experienced a deficit will also be eligible for support from their strategic health authorities.

Capping was introduced as part of the transition to the payment by results hospital funding system to ensure that no trust experienced an increase or decrease in income of more than 2% a year until 2008/09, as the system was phased in.

But DoH guidelines - published just before Christmas - explain that eligible trusts 'do not automatically have a right to support and any provision is entirely at the discretion of the SNA'.

Any support given will have to be approved by the DoH and reported in financial plans. …

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