Financial management in the NHS is a report prepared jointly by the Audit Commission and the National Audit Office. It sets out the state of NHS finances in 2004/05, looks at current financial management and reporting issues, and briefly considers the most significant financial management issues facing NHS bodies in 2005/06 and beyond. Through this joint perspective, it presents an overview of the effects of these issues at national level and examines the consequences for the national health economy.
Included in this report:
- introduction
- financial performance 2004-05
- returning to financial balance
- audit of the 2004-05 NHS accounts
- financial issues arising in 2005-06 and beyond
Many NHS bodies are facing significant financial pressures, but the challenges facing the NHS as a whole continue to grow. In particular, additional resources available to the NHS will begin to reduce with public expectations of the NHS to continue to improve their access to prompt and good-quality healthcare. NHS bodies will need to consider the risks they face, and the skills they have available, to manage these pressures more effectively and allow service outcomes to be maintained and improved. To assist in this process, the National Audit Office and the Audit Commission highlight four key recommendations based on good practice identified within the NHS, supported by a number of detailed action points that can be found in the main body of the report.