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Watchdog warns patient services face disruption
Wage bills may not be met in Surrey and Sussex
NHS services across two counties are on the brink of a financial collapse that could disrupt services to patients, the Audit Commission warned last night.
It said the entire health economy in Surrey and Sussex is at risk due to weak financial management and failure to address problems raised by district auditors over the past few years.
Hospitals and primary care trusts are heading for a collective deficit of £75m by the end of March and their cash position is so precarious that they may not be able to pay the wages or meet bills from suppliers. The warning came in a "public interest report" from Helen Thompson, the district auditor.
"I am concerned about the financial position of the Surrey and Sussex health economy," she said. "Unless this deficit is effectively addressed, it is likely to impact on services provided to patients. There are an increasing number of organisations in deficit and in some the financial position has got substantially worse."
Surrey and Sussex hospital trust lost £30.7m in 2004-05, Royal West Sussex lost £15.5m and Brighton and Sussex university hospitals lost £10m. Five other trusts in the counties had a combined deficit of £11.3m.
The health authority commissioned consultants to draw up a recovery plan, but the trusts are not likely to implement it without a more effective "performance culture", the commission said...
When I was over working in the UK recently I had the opportunity to speak to several Health Service business managers. All privately agreed the NHS was in a big mess and poised for catastrophy.
Despite the reteric from the government that millions of pounds had been recently invested into the industry, public hostpitals and trusts were already heavily in debt and the vast administration changes forced on the NHS by the government remained funded. The businesses had to find the money form existing sources hence the clinical sevices that were supposed to emerge were unlikely to arise because the hospitals and trusts were already in the red. Catch 22.
It is no surprise to read hospitals are now in trouble.