Post by Deanne Jenkyns on Mar 6, 2008 16:15:19 GMT 1
£230m surplus despite job woes
Exclusive Amanda Crook
4/ 3/2008
HEALTH chiefs are sitting on £230m of unspent public money while a Greater Manchester hospital fights for survival.
A new report shows NHS North West, which oversees healthcare across the region, is expected to announce the massive surplus, one of the largest in the country, at the end of this month.
The news comes as a cash crisis threatens the future of Trafford General Hospital, renowned for being the birthplace of the NHS, with managers being forced to borrow money to pay wages and some staff facing redundancy.
NHS North West managers say they have been given the cash - a quarter of their annual turnover but three per cent of the regional health budget - to safeguard by local health trusts who will use their surpluses for future projects, like building new facilities.
But critics say there is a `moral obligation' on health bosses to ensure there are no job cuts while there is so much money saved up locally.
They are also concerned that as the surplus has been mounting up over the last two years more than 350 beds have been cut from hospitals in Greater Manchester and some patients have been left without potentially life-saving drugs.
Nigel Flanagan, from health union Unison, said: "We would agree it is better for the NHS to be in surplus than in deficit but these surpluses have been created by hard working staff and there is a moral obligation to remove the risk of redundancies which those same people are now facing.
Squeezed
"We believe the NHS squeezed too hard when they feared financial problems and we want to see this money going into services, cutting waiting times and providing the treatments rather than sitting as savings."
Trafford Hospital bosses had to borrow £3m to pay staff wages last month and announced they would have to cut 210 posts, close two operating theatres and rent out two wards to tackle a £7m predicted debt.
A spokesman for NHS North West said: "All NHS organisations are required to produce a surplus each year as part of the national financial strategy to create the capacity to invest in services in future years and so that trusts do not have to `borrow' money from next year's budget.
"The bulk of this £230 million is money lodged with NHS North West by trusts to guarantee its availability next year to fund planned developments.
"In effect, the money is the NHS savings account to fund future developments such as more GPs, new community health centres and plans to reduce waiting times for treatment.
"All NHS organisations have been working to improve their efficiency; we cannot be seen to be rewarding inefficiencies in trusts who continue to work on this."
The £230m surplus would have paid to run Wrightington, Wigan and Leigh Hospital trust last year. It could also have paid for 7,500 nurses.
When NHS North West was founded two years ago it had a surplus of £46m, with £40m coming from trusts in Greater Manchester whilst trusts across the country struggled with debts.
Last year the organisation finished £185m in the black.
A Department of Health spokeswoman said: "This money will stay within the NHS. This surplus demonstrates sound financial planning and gives organisations flexibility to respond to changes in demand."
Exclusive Amanda Crook
4/ 3/2008
HEALTH chiefs are sitting on £230m of unspent public money while a Greater Manchester hospital fights for survival.
A new report shows NHS North West, which oversees healthcare across the region, is expected to announce the massive surplus, one of the largest in the country, at the end of this month.
The news comes as a cash crisis threatens the future of Trafford General Hospital, renowned for being the birthplace of the NHS, with managers being forced to borrow money to pay wages and some staff facing redundancy.
NHS North West managers say they have been given the cash - a quarter of their annual turnover but three per cent of the regional health budget - to safeguard by local health trusts who will use their surpluses for future projects, like building new facilities.
But critics say there is a `moral obligation' on health bosses to ensure there are no job cuts while there is so much money saved up locally.
They are also concerned that as the surplus has been mounting up over the last two years more than 350 beds have been cut from hospitals in Greater Manchester and some patients have been left without potentially life-saving drugs.
Nigel Flanagan, from health union Unison, said: "We would agree it is better for the NHS to be in surplus than in deficit but these surpluses have been created by hard working staff and there is a moral obligation to remove the risk of redundancies which those same people are now facing.
Squeezed
"We believe the NHS squeezed too hard when they feared financial problems and we want to see this money going into services, cutting waiting times and providing the treatments rather than sitting as savings."
Trafford Hospital bosses had to borrow £3m to pay staff wages last month and announced they would have to cut 210 posts, close two operating theatres and rent out two wards to tackle a £7m predicted debt.
A spokesman for NHS North West said: "All NHS organisations are required to produce a surplus each year as part of the national financial strategy to create the capacity to invest in services in future years and so that trusts do not have to `borrow' money from next year's budget.
"The bulk of this £230 million is money lodged with NHS North West by trusts to guarantee its availability next year to fund planned developments.
"In effect, the money is the NHS savings account to fund future developments such as more GPs, new community health centres and plans to reduce waiting times for treatment.
"All NHS organisations have been working to improve their efficiency; we cannot be seen to be rewarding inefficiencies in trusts who continue to work on this."
The £230m surplus would have paid to run Wrightington, Wigan and Leigh Hospital trust last year. It could also have paid for 7,500 nurses.
When NHS North West was founded two years ago it had a surplus of £46m, with £40m coming from trusts in Greater Manchester whilst trusts across the country struggled with debts.
Last year the organisation finished £185m in the black.
A Department of Health spokeswoman said: "This money will stay within the NHS. This surplus demonstrates sound financial planning and gives organisations flexibility to respond to changes in demand."
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