News / Providers hit out at ‘counter-productive’ fines

Analysis by representative body NHS Providers revealed the £600m figure – an estimate of the sums withheld from providers for breaching waiting time and other key performance targets during the year.

This represents almost a quarter of the £2.8bn deficit forecast at quarter 3 across the provider sector.

In previous years, a number of commissioners chose not to levy fines or, where money was generated in fines, it was often reinvested back into providers to help them address the causes of the breaches.

However, NHS Providers highlighted changes in 2015/16 that have hit provider finances.

First, the ability for commissioners to waive fines was removed. And in January this year (with effect from October last year), commissioners were told the fines should be retained to improve their year-end position. This had resulted in increased provider deficits and delayed patient care, according to NHS Providers.

‘NHS trust chief executives tell us they are intensely frustrated by these fines and see them as short-sighted, counter-productive and reflecting a sense of denial about how serious the problems facing hospital, community, mental health and ambulance services really are,’ said Chris Hopson, NHS Providers chief executive.

‘Imposing fines or refusing to pay the full cost of treatment makes no sense at all in this situation and does nothing to address the underlying reasons for trusts missing their performance targets.

No-one is arguing that trusts should get a free pass – they should be accountable for how they perform – but fining them for circumstances beyond their control is counter-productive and leads to worse patient care and even bigger financial problems.’

The lobbying group called for system leaders to suspend fines for 2016/17.