NHS trusts sink deeper into the red

Budget deficits among NHS trusts have risen sharply

NHS trusts north of the border are £24m more in the red than last year, it has been revealed.

The deficits were highlighted in a report by Scotland's Auditor General, Robert Black who monitors spending across the public sector.

His findings show that eight trusts failed to break even in 2000/2001 and many more, particularly acute hospital trusts, faced growing financial pressures.

Ministers said the figures referred to "historic deficits" which were being cleared but opposition parties cited them as evidence that the NHS was declining under the Labour dominated Scottish Executive.

Trust deficits

Tayside - £15.9m

Lanarkshire - £12.7m

North Glasgow - £9.5m

Grampian - £4.9m

South Glasgow - £4.1m

Argyll and Clyde - £3m

Highland - £2.7m

Renfrewshire and Inverclyde - £1.1m

The report, Overview of the National Health Service in Scotland, shows that the accumulated deficits among Scottish NHS trusts have risen by around 44% to £54m.

In his report Mr Black said that financial stewardship of the NHS's £6bn Scottish budget continued to be of a high standard.

He also acknowledged the additional £90m allocated by ministers in September to alleviate the financial pressures on trusts but pointed out that it was a "one-off" injection.

Mr Black said: "It is clear that many trusts - particularly acute hospital trusts - faced mounting financial pressures in 2000/01.

"Indications are that these pressures are continuing. Many trusts will be challenged by new and continuing pressures on budgets if they are to achieve financial balance."

'Reducing waiting times'

The report says that factors such as changing populations, technological advances and rising service costs will cause increased financial pressures in future.

It also expresses concerns about the rate of progress in developing procedures for checking the £1.3bn in payments made to doctors, dentists, pharmacists and opticians.

Mr Black added: "The setting up of an Fraud Investigation Unit is an important development but all the initiatives need to be pursued urgently to ensure that there is a robust and consistent approach to payment verification across Scotland."

Auditor General: "Financial pressures"

Health Minister Malcolm Chisholm said the overall financial position of the NHS in Scotland had improved over the last three years and that it had begun this financial year debt-free.

"The deficit figures refer to historic trust deficits at the year end 2000-01," he said.

"These were all completely cleared by an additional £79m we invested in September to free up the NHS to concentrate on reducing waiting times and other key targets."

The Scottish National Party said the figures proved that the NHS was no longer safe in the hands of Labour ministers.

The party's health spokeswoman Nicola Sturgeon said: "The reality is that under Labour the NHS is struggling to make ends meet and patients are suffering as a result.

'Financial mis-management'

"The latest figures show that 107,000 people in Scotland are currently waiting for treatment and that the average waiting time is 91 days - two weeks longer than when Labour came to power.

"And when we consider that North Glasgow University Hospitals NHS Trust alone accumulated a deficit of £9.5m, it becomes much easier to understand why the Beatson Oncology Centre is in such a state of crisis."

Scottish Conservative health spokesman Mary Scanlon said the executive had sent out a message that it was willing to bail out overspending public bodies when it announced a one-off lump sum to clear the deficits of NHS trusts.

Mary Scanlon: "Appalling figures"

"The executive must ensure it does not make a habit of bailing out health trust overspending," she said.

"It must not give the green light to financial mis-management.

"As Jack McConnell stressed on becoming first minister, throwing money at a problem is unlikely to provide the solution.

"Reform, and not necessarily more money, is the answer to the ills of our health care system.

"The executive must shoulder its responsibilities for these appalling figures and come to terms with the need for radical reform of the NHS."