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Intra Balance Deficit Possibly £200m or More

The link is to a press release on the Monitor Website. A detailed consideration of the Audit Commission report into 2004-5 and other communications gives the following information:

  1. During 2005-6 Auditors had concerns about the financial standing of 59% of NHS bodies. This means that there was a risk of deficit at 59% of bodies.

  2. NHS foundation trusts have reported £28m of provisions against potential bad debts with primary care trusts (PCTs). While these figures are subject to audit, it suggests that nine NHS foundation trusts have significant concerns about whether their commissioning PCTs will make payment for work which has been carried out. PCTs commission services from NHS foundation trusts on the basis of legally-binding contracts. - this is a quote from Monitor's press release. They may think that this is an overestimate, but it gives an indication that intra NHS Balance reconciliation could reveal at least £200m of hidden deficit for the last financial year (2005-6).

  3. On page 10 of the NAO/Audit Commission report it says: NHS bodies are preparing for the impact of mergers and restructuring, as well as implementing Payment by Results and other national initiatives. It is vital that financial control is not weakend during this period of instability ... the point about this is that it is likely that people will take their eyes off the ball whilst trying to find themselves jobs in the new structures.


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