NHS trusts are predicting a deficit of more than £200m in this financial year, HSJ can reveal.
Eleven hospital trusts are currently predicting deficits at the end of 2013-14.
It represents a significant deterioration on the position at the same time last year, when only five trusts were predicting a deficit.
Information gathered from board papers by HSJ reveals a number of trusts which predicted a surplus for 2012-13 have been forced to plan a deficit for 2013-14.
The financial plans have been submitted to the NHS Trust Development Authority, which oversees non-foundation trusts, as well as published in board papers.
The total deficit predicted by trusts at this time last year was £160m. It has increased by a quarter year on year.
The news comes as Chancellor George Osborne prepares to unveil his comprehensive spending review for 2015-16 tomorrow, with speculation there may be requirements for the Department of Health to fund services previously the responsibility of other departments. That may have the knock of effect of reducing NHS funding and increasing pressure on the service.
There are six organisations which now predicting a deficit, but which predicted a surplus at this time last year.
- Plymouth Hospital Trust, which is predicting a £13m deficit
- Barnet and Chase Farm Hospitals Trust predicting a £16.4m deficit
- Princess Alexandra Hospital Trust predicting a £16.6 deficit
- United Lincolnshire Hospitals Trust predicting a £16m deficit
- East Sussex Hospitals Trust predicting a £19.4m deficit
- University Hospital of North Staffordshire predicting a £31.4m deficit
The remaining five of the 11 trusts currently predicting a deficit also predicted a deficit last year.
They are Mid Yorkshire Hospitals Trust, which predicts a £24.6m deficit for 2013-14; Barking, Havering and Redbridge University Hospitals Trust predicting a £17.7m deficit; North West London Hospitals Trust with £20.3m deficit; and Epsom and St Helier University Hospitals Trust with a £7.4m deficit.
South London Healthcare Trust is due to be dissolved in October under the trust administration regime. At that point the trust will have run a deficit of £29.1m. This does not include sums set aside by the Department of Health to compensate the balance sheets of trusts which will absorb parts of the trust in October.
HSJ understands the Department of Health is considering setting up a committee with the role of ruling on which trusts should receive “transitional support”, likely to be regarded as bailouts. It follows the abolition in April of strategic health authorities, which previously oversaw trusts’ finances.
Trusts’ bailouts had previously come from either the Department of Health, SHAs or primary care trusts.
The overall deficit figure of more than £200m does not include money which is due to be given to Barts and the London Trust in 2013-14. It last year merged with Newham University Hospital and Whipps Cross University Hospital – both of whom had recorded deficits in previous years.
A spokesman for the NTDA said it had not worked through redundancy plans with any of the affected trusts and wouldn’t know if the overall income of NHS trusts would go up or down until more analysis had been carried out.
The spokesman said: “There are a number of trusts who were previously in receipt of non-recurrent transitional income in 2012-13. We are working with NHS England and trusts are working with their commissioners to determine the levels transitional support that will be available to trusts in 2013-14.”
HSJ’s analysis does not include deficits predicted at foundation trusts this financial year.
- Acute care
- ACUTE LIST
- BARKING, HAVERING AND REDBRIDGE UNIVERSITY HOSPITALS NHS TRUST
- BARNET AND CHASE FARM HOSPITALS NHS TRUST
- Department of Health and Social Care (DHSC)
- EAST SUSSEX HEALTHCARE NHS TRUST
- EPSOM AND ST HELIER UNIVERSITY HOSPITALS NHS TRUST
- George Osborne
- London North West University Healthcare NHS Trust
- MID YORKSHIRE HOSPITALS NHS TRUST
- SOUTH LONDON HEALTHCARE TRUST
- Strategic health authorities (SHAs)
- THE PRINCESS ALEXANDRA HOSPITAL NHS TRUST
- UNITED LINCOLNSHIRE HOSPITALS NHS TRUST
- UNIVERSITY HOSPITALS OF NORTH MIDLANDS NHS TRUST
- University Hospitals Plymouth NHS Trust