News / Health service turns in robust Q2 performance

The NHS in England continues to report healthy levels of surplus, with primary care trusts, strategic health authorities and non-foundation trusts forecasting aggregate surpluses of more than £1.2bn at the midpoint of the financial year. FTs reported actual net surpluses of £164m in the first six months of the year.

Monitor’s Q2 report said foundations’ income was running slightly ahead of plan and the overall cash position had improved. The aggregate cash balance of 138 foundation trusts at quarter two is £3.3bn – £370m ahead of plan.

The sector is on course to deliver the planned EBITDA (earnings before interest, tax, depreciation and amortisation) of 6.1%. However, a small number of trusts were beginning to struggle.

The regulator’s chief operating officer, Stephen Hay, was encouraged by the sector’s performance.

‘The surplus shows the benefit of robust financial planning and management of costs across the sector. However, we’re committed to working closely with those trusts experiencing financial difficulties and if necessary will take regulatory action to make sure that the issues are addressed,’ he added.

While SHAs and PCTs forecast a combined surplus of £1.19bn (1.2% of total NHS revenue resources), compared with £1.17bn at quarter one, non-foundation trusts predicted an aggregate surplus of £36m compared with  £61m.

The Department of Health said this was due to an increase in the level of deficits for organisations already forecasting deficits and reduced surpluses in those forecasting surplus or breakeven.

Three PCTs forecast a deficit in Q2, totalling £56m (the same as the previous quarter), while seven NHS trusts forecast a gross operating deficit of £186m in Q2.

Of these seven, three are forecasting the same operating deficit as in Q1, two had an increased operating deficit, and one trust predicted an operating deficit for the first time in 2011/12.

The final trust, Epsom and St Helier University Hospitals NHS Trust, has improved its position. It is now forecasting a year-end deficit of £14m, an improvement of £5m.

The Department said it was working with SHAs to ensure the 10 organisations forecasting a deficit have robust plans in place for financial recovery, while continuing to improve the quality of services? for patients.