Magazine article Public Finance

Health Economy Is in Dire Straits, Warns BMA

Magazine article Public Finance

Health Economy Is in Dire Straits, Warns BMA

Article excerpt

A third of NHS trusts are planning to reduce their services because of financial problems, a British Medical Association survey has found.

Almost three-quarters of the 120 respondents said their trust was facing a significant funding shortfall in the current financial year, ranging from £0.2m to £25m.

In addition, almost half of trusts said they were planning to freeze recruitment, while a quarter said they were considering staff redundancies.

One respondent said the whole health economy was in 'dire straits'. 'Trust management is doing its best to mitigate its impact but is compelled to act by freezing services and reconfiguring services. The impact will be felt for a long time to come," they said.

In August, the BMA wrote to Health secretary Patricia Hewitt about the financial state of the NHS, but a reply from health minister Lord Warner suggested the government was still in denial about the problem, the association claimed. …

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