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NHS Deficit bigger than thought

The link relates to Cornwall. There was a news piece about Coventry that I have not been able to find on the web. Those talk about a forecast deficit of £30m.

As usual it is difficult to work out from the reports whether this relates to financial year April 2005-March 2006 or the current financial year.

The govetnment are still refusing to reveal their most up-to-date predictions. The problem, however, is that although they allow a Market Force factor, which means that being dead on arrival in Cornwall pays the Hospital £71 and in central London it is £99, they don't take into account fixed costs which vary substantially from hospital to hospital. This is an accounting error as the decisions to incur those costs were taken before they mattered ... and ... they are underwritten by government in any event.

At least in Birmingham we do not have to suffer from a massive reorganisation of PCTs.

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R v SUSSEX JUSTICES ex p McCARTHY [1924] 1 KB 256

November 9 1923

Editor’s comments in bold.

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