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'Meddling' to blame for NHS debts

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  #1  
Old 6th June 2006, 05:47 PM
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Default 'Meddling' to blame for NHS debts

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The BBC are reporting:
'Meddling' to blame for NHS debts
Quote:
Mounting NHS deficits have been caused by political meddling and damaging policies, hospital consultants say.
The British Medical Association attacked the government's handling of the health service as ministers prepare to reveal the size of the deficit.

Last year the deficit stood at £220m, but many have predicted the 2006 figure could be as high as £620m.

The BMA said the government was wasting money on involving the private sector and management consultants.

The government is bracing itself for criticism later on when the unaudited accounts for the last financial year are published.

The half-year forecast figure in December showed the NHS was heading for a £620m deficit.

At the time, Health Secretary Patricia Hewitt said she expected it to be reduced to around £250m - in line with the previous year - but indications are that the NHS has failed to make significant in-roads into it, although it is likely to be slightly lower.

Paul Miller, chairman of the BMA's consultants committee, who will address a conference of doctors on Wednesday, said money was being wasted by a series of initiatives.

He said hospital facilities were being left underused because private treatment centres, which carry out minor surgery, had been given a guaranteed numbers of patients.

Waiting times:
And he also pointed the finger of blame at PFI deals, which use private money to build NHS hospitals, claiming firms had made money when facilities had not been built or vastly delayed.

Meanwhile, he claimed about £1bn was being spent by the NHS on management consultants each year "without any clear benefit".

"Yes, bad management is a problem in some places, but the biggest cause is the interference from government. Something is going badly wrong and it is demoralising for staff," he said.

But Health Minister Andy Burnham said Mr Miller's analysis was "skewed". "It is the government's reforms that have delivered these improvements for patients and I find it staggering that Mr Miller seems unaware of these facts."

He added the NHS's annual report, being released on Wednesday, will show waiting times are falling and the quality of treatment improving.

And the acting chief executive, Sir Ian Carruthers, will warn against what he describes as hysteria over NHS finances and job cuts.

But latest figures from the Royal College of Nursing paints a less rosy figure, estimating that 15,000 job cuts have been announced in recent months. This comes on top of the hospitals which have also reported closing wards and delaying operations.

The causes of the deficits are also set to be explored in a joint National Audit Office and Audit Commission report to be published after the government reveals the deficit figure.
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  #3  
Old 7th June 2006, 04:28 AM
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The BBC are reporting:
NHS deficit doubles to over £500m
Quote:
The NHS deficit has reached £512m - more than double the amount last year.
The unaudited figure for the 2005-6 financial year is £100m less than mid-year forecasts, prompting ministers to say the crisis had stabilised.

Overall, nearly a third of the 566 NHS organisations failed to break-even with a hardcore group of 63 responsible for 70% of the deficits.

Over 12,000 jobs have been cut, wards closed and operations delayed as NHS trusts have struggled with finances.

The deficit would have topped £1bn if it was not for a huge surplus registered by regional bodies known as strategic health authorities (SHAs).

SHAs are largely management organisations, but do handle the NHS training and education budget which has been cut by up to 10% in some places.

Health Secretary Patricia Hewitt said: "The NHS is now stabilising this financial problem while counting to improve services for patients."

And she added that while job cuts were being announced in the overwhelming number of cases they would not lead to redundancies.

The NHS annual report, also released along with the finances, showed waiting times and deaths from cancer and heart disease failing.

In December, the government published mid-year forecasts showing the NHS was heading for a £620m deficit.

At the time, Ms Hewitt said she expected to get it down to about £250m by the end of the financial year and zero 12 months later.

Target

She subsequently admitted the £250m mark would be missed, but still maintained the NHS would break even by the end of 2006-7. She also announced financial figures would be published quarterly instead of half-yearly.

The £512m figures compares to £221m a year ago and a small surplus the year previously.

It represents just 0.8% of the NHS budget, but comes after NHS funding has doubled since Labour came to power.

Most of the worst deficits are concentrated in the east and south east of England.

But the government dismissed claims regional factors were the cause of the problems.

Instead, Ms Hewitt has pointed the finger of blame at bad management. She has already sent financial hit squads into the worst performing trusts.

Gill Morgan, chief executive of the NHS Confederation, which represents health managers, said: "It is all too easy to blame individual managers, but the financial problems often relate to systemic issues."

And doctors' leaders have blamed political interference and bad policies for the problems.

Paul Miller, chairman of the British Medical Association's consultants committee, said the involvement of the private sector and use of management consultants were wasting vast sums of money.

"Yes, bad management is a problem in some places, but the biggest cause is the interference from government. Something is going badly wrong and it is demoralising for staff."

Shadow Health Secretary Andrew Lansley said the huge SHA surplus was masking the extent of the problems.

He said nurses and doctors would no longer have posts to go on to when they finished their training as they were cutting their budgets by 10% to bail out other parts of the health services.

He also said the government had underestimated the cost of new contracts for GPs, hospital doctors and nurses, adding: "Policy is failing."

Liberal Democrat health spokesman Steve Webb added the government had shown "incredible mismanagement" after spending huge sums on the NHS and ending up with one of the worst deficits for years.
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  #4  
Old 9th June 2006, 12:32 PM
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The BBC are reporting:
Thousand jobs to go at NHS trust
Quote:
Up to 1,100 posts are to be lost at a hospital trust as it attempts to cut its pay bill by £18m.
The Mid Yorkshire Hospitals NHS trust, which covers Dewsbury and Wakefield, estimates it will be able to lose the positions over the next five years.

A trust spokesman said it could make the savings through natural turnover and spending less on temporary staff.

He said redundancies could not be ruled out, but it was hoped they would be kept to a minimum.

The trust said it also wanted to reduce the amount spent on equipment while treating more patients in less time. ....
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Old 14th June 2006, 04:26 AM
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The BBC are reporting:
Managers call for 'more open' NHS
The NHS needs to become more open and honest about its problems if it is to avoid lurching from crisis to crisis, senior managers say.
NHS Confederation chief Gill Morgan will tell health managers secretiveness causes people to try to cover up problems, rather than tackling them.

A survey of 199 NHS bosses found 82% thought the cash crisis was made worse by a lack of transparency and trust.

Figures published last week showed the NHS was facing a £512m deficit.

Nearly one in three trusts failed to balance the books last year, causing the health service's debt to more than double in 12 months.

For months, the NHS was denying the problem was going to get worse, but from the start of this year hospitals have had to cut jobs, closed wards and delayed operations as the problems began to bite.

And in an interview with the Guardian newspaper on Wednesday, Sir Ian Carruthers, the NHS acting chief executive, admitted that big acute hospitals may have to close to eliminate the deficit.

Ms Morgan, in a speech to open the NHS Confederation's annual conference in Birmingham on Wednesday, will question whether the drastic measures could have been avoided if the NHS had been more open when the debts began to mount.

'Malign culture' :
She will add that there is a strong feeling among managers that the heavy focus on targets has led to a "blame culture" which reports on failure rather than acknowledging problems early and preventing failures ever happening.

Ms Morgan will say: "This is a malign culture which will prevent us improving the service for patients as we become too concerned with what we present to other parts of the services.

"And the last year has been bruising and one of the side-effects has been a damage in morale and a loss of trust."

The NHS Confederation will also publish a survey of 199 chief executives which shows 82% believe the current problems have been compounded by a lack of trust and transparency across the health service.

John Appleby, chief economist at the King's Fund health think-tank, agreed a culture of secrecy had emerged.

"Finance directors have been under a lot of pressure because NHS financing has been put under the spotlight.

"Talking to them, they felt compelled to say the situation was rosier than it was."

He said this was caused by higher public expectations at a time when the NHS was getting more money than ever and also pressure from above by senior managers at strategic health authorities.

A Department of Health spokesperson said: "We agree that strong leadership is essential in the NHS to help foster a culture where problems are acknowledged early so that the right action can be taken to deal with them.

"We are already making changes towards greater transparency - for example, Patricia Hewitt has now committed to publishing financial information on a quarterly basis." [/quote]
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