NHS financial year 2011/12
This report summarises the findings from the 2011/12 audit of primary care trust (PCT), NHS trust and strategic health authority (SHA) accounts. It also examines some of the productivity challenges in the NHS, concluding the Audit Commission’s ‘More for Less’ series of reports.
The report finds that PCTs, SHAs and NHS trusts reported a combined under-spend and surplus of 1.6 billion in 2011/12. Most NHS trusts reported an improved financial position in 2011/12. Thirty two NHS trusts reported a reduced surplus compared to 2010/11 and a further seven deteriorated to the point of reporting a deficit.
The report shows stark differences in health finances around the country, with the majority of NHS trusts in deficit located in London and the south-east. Within London there are substantial differences in the fortunes of trusts. As a region, London reported the highest surplus nationally, but it was home to the NHS trust with the highest deficit. Overall, healthcare organisations in inner London fared better financially than those in outer London.
The report also considers how PCTs have made savings and the impact on trusts’ income and services. Overall, the savings programmes have had no material affect on the numbers of front-line staff, although the number of managerial and administrative staff has fallen significantly. But, the productivity of acute and specialist trusts does not appear to have increased and there is also little sign of services moving out of hospitals and into the community. These changes are both considered key to achieving the longer term financial sustainability of the NHS.
The number of trusts in deficit previously stated in this report was based on 6 NHS foundation trusts reporting a deficit before impairment in 2010/11, and 21 in 2011/12. These figures were taken from Monitor’s published consolidated accounts for NHS Foundation Trusts for the respective years. However, Monitor have informed us that accounting changes for 2011/12 mean that the comparator number of NHS foundation trusts in deficit in 2010/11 should be 19, not 6. The combined totals for NHS trusts and foundation trusts in deficit in each year should therefore be 26 in 2010/11 and 31 in 2011/12. The report has therefore been amended accordingly.