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pre-Budget Report - NHS in financial crisis

The problem faced by the NHS in trying to stick within budget 2/3 of the way through the year is it is quite difficult in a staff intensive service to find easy savings.

That is why hospitals have been told to use targets as maxima rather than minima.

In Birmingham it is the Sandwell and City Hospital Trust that faces a substantial end of year forecast deficit of £5,100,000. Finding this in 4 months means savings or cuts of an annual equivalent of £15,300,000. That is quite difficult.

The problems arise from changes enforced centrally.

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