News / Six trusts classed as challenged despite brighter outlook overall

Fewer NHS trusts and primary care trusts are forecasting a year-end deficit, but six trusts have been rated as ‘challenged’ under the finance section of the performance framework.

In the first quarter of 2010/11, the Department of Health reported primary care trusts and strategic health authorities in England forecast an overall surplus of £1.345bn – or 1.4% of total revenue.

NHS trusts (not foundation trusts) were forecasting an overall operating surplus of £186m. No PCTs forecast a deficit, compared with four with a gross deficit of £39m in the 2009/10 final accounts. Two trusts forecast an aggregate operating deficit of £55m, compared with six in 2009/10 with an aggregate deficit of £98m.

There was a gross technical deficit of £297m in 31 trusts due to impairments or the revenue cost of bringing private finance initiative assets onto the balance sheet. At the end of 2009/10 there were 84 trusts with technical deficits totalling £1.36bn.

Overall, the NHS continued to perform well under the performance framework, which now rates trusts separately on finance and quality.

Most trusts turned in a good performance in both areas, though under the separated-out finance assessment five were under review and seven classified as underperforming. Six of the under-performing trusts have been escalated to ‘challenged’ as they have been underperforming for three consecutive quarters. ?

NHS deputy chief executive David Flory said that while a number of these trusts had achieved adequate scores in Q1, they had been escalated to ‘challenged’ because of concerns over their underlying financial health, or they had outstanding debt with the Department with no plans for repayment.