NHS groups reported over £45m black hole
Health bosses in Staffordshire have been reported to the Health Secretary over their dire finances after overspending £45 million of taxpayers' cash.
Three clinical commissioning groups covering Cannock, Stafford, Burntwood and Lichfield, have run up deficits to the tune of nearly £25 million while the University Hospital of North Staffordshire in Stoke – which is taking over Stafford Hospital – overspent by £19m last year.
The referrals to Health Secretary Jeremy Hunt were made by the Audit Commission with 24 clinical commissioning groups and 19 NHS trusts in the country reported for failing break-even or not having a robust enough plan to balance the books in coming years.
The 19 trusts referred represented a three-fold increase in the number of NHS trusts being reported to the Health Secretary compared with the previous year.
And the 24 clinical commissioning groups (CCG) referred represented 11 per cent of the new GP-led organisations which decide what services should be provided in their area.
Cannock Chase CCG and Stafford and Surrounds CCG both overspent by £9m each last year with South East Staffordshire and Seisdon Peninsular CCG having a deficit of £4.467m.
The cost of providing treatment is largely attributed to the overspend. Audit Commission's controller of audit, Marcine Waterman said: "This level of reporting is worrying and reflects the increasing risks to the financial sustainability of individual NHS trusts, as they continue to face sizeable financial pressures due to a rising demand for services."
A spokesman for Stafford and Surrounds and Cannock Chase CCG said a plan was in place to keep costs down by working with partner NHS organisations.
A spokesman for South East Staffordshire and Seisdon and Peninsula CCG said: "We are working with NHS England to ensure we are back in financial balance by 2015/16."
A University Hospital of North Staffordshire spokesman said: "Last year the trust reduced its planned deficit from £31.7 million to £19.3 million and we have plans to return to surplus in the forthcoming years.
"This improved position was achieved despite the additional cost of the new hospital and the requirement to retain other parts of the estate due to significant activity pressures." A Department of Health spokesperson said: "We understand some trusts are facing financial challenges but by making tough economic decisions we've been able to increase the budget by £12.7billion over the course of this parliament.
"It is essential that trust CEOs have a tight financial grip and ensure they live within their means."
