Press release: NHS Confederation reponds to the NHS quarter two financial figures
29 Nov 2007
Commenting on the quarter 2 financial statistics, Gill Morgan, Chief Executive of the NHS Confederation which represents over 95 per cent of NHS organisations, said:
"It is basic common sense to create a healthy reserve so we can plan spending over the long term and reinvest in patient care for the future. This is sound financial management.
"It is prudent to create a surplus as part of a long term plan, given that the rate of growth in the NHS is set to decrease from next year. This will enable a smooth transition while protecting and improving services.
"The surplus amounts to just over two per cent of the overall NHS budget. NHS organisations have been advised by the DoH to achieve surpluses and that this should become the norm across the service.
"We need the government to ensure a fair and transparent financial system which enables NHS organisations to make proper long term plans to use their resources most effectively. Therefore, we are concerned that we are moving to a one year allocation for the next year, and believe there must be no return to compulsory top-slicing of PCTs by SHAs."
David Worskett, Director of the NHS Partners Network, said:
"The independent sector sustains planned reserves where possible. This makes good business sense and gives organisations the necessary resources to invest in customer services. There is no reason why the same principle should not apply to the NHS."
David Stout, Director of the Primary Care Trust Network which represents the majority of Primary Care Trusts, said:
"A surplus is not money wasted, but a means to make the long term changes patients want to see in their health service. Primary care trusts will be using this money to invest in innovative and responsive new services, for example, moving care out of hospitals and closer to home."
ENDS
Notes for editors
1. The NHS Confederation represents more than 95% of the organisations that make up the NHS. Its members include the majority of NHS acute trusts, ambulance trusts, foundation trusts, mental health trusts, primary care trusts, special health authorities and strategic health authorities in England; trusts and local health boards in Wales; and health and social service trusts and boards in Northern Ireland.
2. NHS Partners Network is an alliance of independent - both commercial and not-for-profit healthcare providers commissioned by the NHS to provide elective and diagnostic care to NHS patients free at the point of delivery. It was established in 2005 and became part of the NHS Confederation in June 2007.
3. Members of NHS Partners Network: Alliance Medical, Capio, Circle, Clinicenta, Care UK/Mercury Health, Netcare UK, Nuffield Hospitals, Partnership Health Group, Spire Healthcare and UK Specialist Hospitals.
4. The PCT Network represents the majority of primary care trusts in England. It was established in December 2006 to provide a distinct voice for PCTs. The Network is part of the NHS Confederation.
Contact details
Contact Niall Smith 020 7074 3304 or 077 6777 0309 or Ruth Kennedy 020 7074 3312 or 078 8447 3086. For out of hours media enquiries, please call the Duty Press Officer on 07880 500726.
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