NHS told 'do better over finance'

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The NHS in England is improving the way it handles finances, but patients deserve better, a watchdog says.

The Audit Commission review of 302 trusts found 282 were meeting minimum standards for balancing books, managing finances and getting value for money.

But it said the remaining 20 - 12 of which had failed for the third consecutive year - had to improve and more should be getting the top score.

NHS chiefs said the results should be welcomed after recent deficit problems.

Trusts that did not balance the books automatically failed the minimum standards, but the group of 20 also included 10 which had finished 2007-8 in the black.

12 TRUSTS FAILING FOR THIRD YEAR IN ROW Barking, Havering and Redbridge HospitalsBromley Hospitals Hinchingbrooke Health Care NHS TrustHounslow PCTNorth West London HospitalsQueen Elizabeth Hospital Queen Mary's SidcupRoyal National Orthopaedic HospitalTrafford HealthcareScarborough and North East Yorkshire Health CareWhipps Cross HospitalWorcestershire Mental Health Trust

These were failed for not having good enough management in place or achieving value for money.

But the scores, which will now be fed into the overall NHS ratings to be published later this year by the Healthcare Commission, still represented an improvement on the previous year with more than half of the trusts going up a grade.

Overall, 14 trusts were said to be performing strongly, 137 well and 131 adequately.

It means 93% of hospital, mental health, ambulance and primary care trusts were performing at least to the minimum standard - a rise from 69% the previous year.

It comes after the £547m deficit was turned into a £1.7bn surplus.

Audit Commission chairman Michael O'Higgins said the improvement had been "impressive". But he added: "Pockets of real concern remain. Poor financial management can put service for patients at risk.

"Patients and the public deserve better from the poor performers and we should be seeing a lot more than only 14 performing strongly."

David Flory, the NHS finance director, said: "It is vital that NHS organisations get financial management right.

"Taxpayers rightly expect the NHS to spend their money wisely.

"Sound financial management puts the service in a position to sustain and improve services for patients."