Fourteen foundation trusts finished 2010-11 in the red, with their combined deficit totalling £66m for the year, according to data from Monitor.
Although annual accounts for last year are not yet out, the three year plans foundation trusts must submit to the regulator revealed the deficits, the highest of which amounts to nearly 10 per cent of turnover.
Mid Staffordshire Foundation Trust ended the year with a £13.8m deficit against an income of £157m, while Heatherwood and Wexham Park saw a £13.2m deficit in the same period, against an income of £223m.
Monitor’s analysis showed a total surplus across the foundation trust sector of £413m but that the profit margin at acute trusts was less than 1 per cent, and down by 50 per cent on 2009-10.
The regulator put this down to “pressures on margins for core activities at acute trusts”, citing the introduction of the marginal non-elective tariff, which restricts payments if trusts breach 2009-10 activity levels. Non-elective activity has increased significantly, the regulator notes.
The 11 acute foundation trusts predicting the worst financial risk ratings for the end of the current financial year have now been revealed. As HSJ reported earlier this month, eight of them are district general hospitals, two are specialists and one is a large teaching hospital.
Cambridge University Hospitals Foundation Trust, which includes Addenbrooke’s Hospital and is an academic health science centre, is predicting deficits for this year in addition to the next two financial years.
Cambridge predicts a financial risk rating of two – the second worst category – for 2011-12, which Monitor says indicates “risk of significant breach [of the terms of their authorisation as a foundation trust] in medium term”.
The £582m turnover trust anticipates a deficit of £10m this year and believes its liquidity – the length of time it could operate on its reserves – will fall from 29.7 days in 2010-11 to 8.5 days during 2011-12.
A spokesman said: “Our planned cost saving this year is £43.3m. This is a major challenge.
“We have many cost improvement projects running, which should make significant savings or generate income but we need to speed them up to achieve break-even or a surplus.”
The trusts predicting financial risk ratings of one or two:
Birmingham Women’s – 2
Blackpool Teaching Hospitals - 2
Burton Hospitals – 2
Cambridge University Hospitals – 2
Heatherwood and Wexham Park Hospitals -2
Mid Staffordshire – 1
Milton Keynes Hospital – 1
Peterborough and Stamford Hospitals – 1
Royal National Hospital for Rheumatic Diseases – 2
Sherwood Forest Hospitals -2
Tameside Hospital – 2
- Acute care
- BIRMINGHAM WOMEN'S NHS FOUNDATION TRUST
- BLACKPOOL TEACHING HOSPITALS NHS FOUNDATION TRUST
- BURTON HOSPITALS NHS FOUNDATION TRUST
- CAMBRIDGE UNIVERSITY HOSPITALS NHS FOUNDATION TRUST
- Foundation trusts
- HEATHERWOOD AND WEXHAM PARK HOSPITALS NHS FOUNDATION TRUST
- MID STAFFORDSHIRE NHS FOUNDATION TRUST
- MILTON KEYNES HOSPITAL NHS FOUNDATION TRUST
- PETERBOROUGH AND STAMFORD HOSPITALS NHS FOUNDATION TRUST
- ROYAL NATIONAL HOSPITAL FOR RHEUMATIC DISEASES NHS FOUNDATION TRUST
- SHERWOOD FOREST HOSPITALS NHS FOUNDATION TRUST
- TAMESIDE HOSPITAL NHS FOUNDATION TRUST