NHS trusts are heading for a deficit of more than £500m next year, the body which represents the sector has warned.
National regulators have said 2017-18 is supposed to be the year when the provider sector returned to financial balance.
‘We need to work out what can actually be delivered,’ Chris Hopson said
But Chris Hopson, the chief executive of NHS Providers, has told HSJ: “We understand that after recent discussions, providers are heading for at least a £500m to £600m deficit in 2017-18.
“There is also now growing financial pressure on the commissioning side and serious doubt on whether they can remain in surplus and cover the provider deficit from a non-recurrent reserve to the same extent that they did this year.”
Mr Hopson said the pressure on commissioning budgets is thought to be “similar” to the provider side, which suggests “currently something like a £1bn gap in the NHS’s 2017-18 finances”.
More than a quarter of trusts have rejected their financial targets for next year. HSJ revealed earlier this month that these trusts would have to find average efficiency savings of 6.4 per cent to hit their targets.
NHS provider trusts have forecast a deficit of £873m in 2016-17, against the planned maximum of £580m. However, this can largely be offset by the £800m “risk reserve” that commissioners were forced to set aside at the start of the year. Significant overspending by CCGs has been covered by underspends within NHS England’s central budgets.
However, NHS England chief executive Simon Stevens has told HSJ that the contingency funds available next year will be smaller than 2016-17.
Full story in The HSJ, 31 March 2017