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NHS 'must make surplus next year' NHS 'must make surplus next year'
(10 minutes later)
The government is to tell the NHS in England it must achieve a £250m surplus next year. The NHS in England has been told it must achieve a £250m surplus next year.
The service ended the last financial year £512m in deficit, but Health Secretary Patricia Hewitt has pledged to balance the books this year.The service ended the last financial year £512m in deficit, but Health Secretary Patricia Hewitt has pledged to balance the books this year.
However, the latest predictions are that there will be a £94m shortfall. However, the latest predictions are that the NHS will have a £94m shortfall this year.
The government will also set out new targets for tackling hospital infection and on meeting the 18-week target for waits from GP appointment to operation. NHS chief executive David Nicholson also set out new targets for tackling hospital infections and meeting the 18-week waiting time target.
In November, Ms Hewitt told the Health Select Committee she would take "personal responsibility" for bringing the NHS out of deficit.In November, Ms Hewitt told the Health Select Committee she would take "personal responsibility" for bringing the NHS out of deficit.
Historical deficitsHistorical deficits
However hospitals and primary care trusts - in charge of community services such as GPs - in particular have already been found to be building up big debts.However hospitals and primary care trusts - in charge of community services such as GPs - in particular have already been found to be building up big debts.
In the next financial year, the NHS should expect to make a financial surplus Health Secretary Patricia HewittIn the next financial year, the NHS should expect to make a financial surplus Health Secretary Patricia Hewitt
But Ms Hewitt told the BBC's Today programme: "By the end of March next year, we will have the NHS as a whole in financial balance.But Ms Hewitt told the BBC's Today programme: "By the end of March next year, we will have the NHS as a whole in financial balance.
"So in the next financial year, the NHS should expect to make a financial surplus.""So in the next financial year, the NHS should expect to make a financial surplus."
Ms Hewitt said many hospitals could address their deficits by increasing the number of operations they carried out on a day-case basis, saving beds and sometimes requiring fewer staff.Ms Hewitt said many hospitals could address their deficits by increasing the number of operations they carried out on a day-case basis, saving beds and sometimes requiring fewer staff.
"If every hospital was doing as well as the top 25%, over day case surgery and length of stay, the NHS would realise over £2 billion to invest in other services and new drugs.""If every hospital was doing as well as the top 25%, over day case surgery and length of stay, the NHS would realise over £2 billion to invest in other services and new drugs."
Responding to a report in the Guardian newspaper claiming around a dozen trusts are "technically bankrupt" and would be unable to break even, the health secretary accepted there were some trusts where the deficit was so high, they would not be able to balance the books in one year.Responding to a report in the Guardian newspaper claiming around a dozen trusts are "technically bankrupt" and would be unable to break even, the health secretary accepted there were some trusts where the deficit was so high, they would not be able to balance the books in one year.
But she said they would be asked to balance the books each month and, when the NHS as a whole was back in balance, the government would look at changing the way the accounting system addressed debts built up over previous years.But she said they would be asked to balance the books each month and, when the NHS as a whole was back in balance, the government would look at changing the way the accounting system addressed debts built up over previous years.
Prime Minister Tony Blair's official spokesman said that the majority of trusts were operating "perfectly well".Prime Minister Tony Blair's official spokesman said that the majority of trusts were operating "perfectly well".
He added: "In the past, there were hidden deficits. What has happened now is that those deficits have become transparent."He added: "In the past, there were hidden deficits. What has happened now is that those deficits have become transparent."
Cases increasingCases increasing
There are concerns that the need to drive down deficit levels, rather than a desire to improve services, are fuelling some of the changes currently taking place in the NHS.There are concerns that the need to drive down deficit levels, rather than a desire to improve services, are fuelling some of the changes currently taking place in the NHS.
At this current time, the NHS is under intense financial pressure, which is directly impacting on patients Jonathan FieldenBritish Medical AssociationAt this current time, the NHS is under intense financial pressure, which is directly impacting on patients Jonathan FieldenBritish Medical Association
Jonathan Fielden of the British Medical Association said: "At this current time, the NHS is under intense financial pressure, which is directly impacting on patients.Jonathan Fielden of the British Medical Association said: "At this current time, the NHS is under intense financial pressure, which is directly impacting on patients.
"There are patients who could be treated quicker being delayed, jobs being frozen, trained doctors and nurses and others not finding jobs to go to while the NHS tries to get its finances sorted."There are patients who could be treated quicker being delayed, jobs being frozen, trained doctors and nurses and others not finding jobs to go to while the NHS tries to get its finances sorted.
"While it is good to produce a financial surplus, surely these aspects need to be sorted first?""While it is good to produce a financial surplus, surely these aspects need to be sorted first?"
Professor Chris Ham, a health policy expert at the Health Services Management Centre in Birmingham, said the £250m surplus target was "very ambitious".Professor Chris Ham, a health policy expert at the Health Services Management Centre in Birmingham, said the £250m surplus target was "very ambitious".
He said it might be achieved if the government followed an Audit Commission recommendation for NHS trusts to write off "inherited deficits" from previous years.He said it might be achieved if the government followed an Audit Commission recommendation for NHS trusts to write off "inherited deficits" from previous years.
NHS trusts will also be told on Monday that 85% of inpatients must receive treatment within 18 weeks by March 2008.NHS trusts will also be told on Monday that 85% of inpatients must receive treatment within 18 weeks by March 2008.
All patients should be treated within that time by the end of the year.All patients should be treated within that time by the end of the year.
InfectionsInfections
The Department of Health will also announce hospitals can bid for a share of £50m to help control infection rates, particularly Clostridium difficile.The Department of Health will also announce hospitals can bid for a share of £50m to help control infection rates, particularly Clostridium difficile.
In addition, hospitals will have to set local targets to keep infection rates low.In addition, hospitals will have to set local targets to keep infection rates low.
C. difficile is a common hospital-acquired infection which usually causes diarrhoea but can lead to fevers or more serious infections.C. difficile is a common hospital-acquired infection which usually causes diarrhoea but can lead to fevers or more serious infections.
Cases of C. difficile are increasing, rising by 17% in the over-65s from 2004 to 2005.Cases of C. difficile are increasing, rising by 17% in the over-65s from 2004 to 2005.
Health minister Andy Burnham said: "Tackling infection is a top priority.
"Clean safe care is not an optional extra and patients have a right to expect the highest standards of care when in hospital."