This site is intended for health professionals only

Trusts show financial improvement but concerns remain

23 October 2007

Share this article

Nearly a third of NHS trusts and primary care trusts (PCTs) are still in poor financial health, official figures show.

The Audit Commission’s Review of the NHS Financial Year 2006-07 found 31% of NHS trusts and PCTs – 104 of the 335 total – are failing to meet minimum requirements on the use of resources.

However, this is an improvement on the data for the year before, when 39% showed “inadequate performance”.

Nearly one in 10 of the organisations scored lowest on use of resources, but also on value for money, financial management and financial standing.

About 27% of trusts and PCTs – 91 of the total – performed well or strongly on their use of resources, up from 12% in 2005-06.

And 77% of NHS bodies balanced their finances in 2006-07, compared with 67% in 2005-06.

This is a sponsored advert: Please read the information below
Cogora InRead Image
Discuss shared challenges with peers and discover opportunities that will help your business thrive
This is a sponsored advert: Please read the information above

But the commission said it is concerned that some trusts have “little hope” of being able to get out of the red without help.

The report said: “The financial position to date in 2007-08 appears to be equally positive.

“Recent figures issued by the Department of Health show that 22 organisations are forecasting that they will fail to achieve financial balance in 2007-08, compared to 81 in 2006-07.

“The Department of Health is forecasting an aggregate surplus of £983m at the end of the financial year.”

Copyright © PA Business 2007

Audit Commission

Want news like this straight to your inbox?