 The Health Secretary announced increased funding |
Health Secretary, John Reid MP, has announced an increase in health funding, for the East region, of almost a third over three years. Basildon Great Yarmouth and others identified as areas of need, are to receive more.
The increase is set against a background of a huge overspend by health providers in the East.
John Reid said :"We have announced the biggest increase in the history of the Health Service, between now and 2007/8.
"Put simply, it means that a few years ago we were spending about �900 per head.
"By 2008 we will be spending around �1300 - �1400 for every man woman and child in England.
"In the case of places like Basildon and Great Yarmouth, it will be above the 20% increase that is general in the region, so increases as big as 22% and 26%.
"Massive investment but also targeted towards areas of greatest need."
Politics Show can reveal that 37 of the 71 primary care, hospital, mental health and ambulance trusts in eastern England are predicting an overspend this financial year 2004/05.
The overspend is expected to be around �100m.
That is a substantial sum even put against the background that the NHS budget for Suffolk, Norfolk and Cambridgeshire is �2.2bn.
Some managers, who are being told to balance their books say they are being squeezed until the pips squeak.
Obligations breached?
In Essex three health providers are warning that they will be have to breach their statutory obligation to break even and patient care, in future years, could be affected.
The Heath Trust in Northamptonshire claims that achieving the six month waiting list has proved very expensive and money would be better spent on care than on government targets.
The Strategic Health Authority for Norfolk Suffolk and Cambridgeshire points out that changes such as:
- the European Working Time Directive, which affects junior doctor's hours
- changes to doctor's out of hours cover
- consultants contracts
- increasing demands of meeting the government's waiting list targets
All have to be paid for and are a strain on financial resources.
 Andrew Lansley: Secretary of State promises money tomorrow while the NHS has deficits today |
Andrew Lansley, Shadow Health Secretary and Conservative MP for South Cambridgeshire, replying to John Reid in the House of Commons said:
"Since January 2005, one third of Strategic Health Authorities (SHA) have published their forecasts for the end of this financial year based on figures from the end of December, 2004.
"In my area, Norfolk, Suffolk and Cambridgeshire, the SHA has forecast a �56m deficit.
"That deficit includes Primary Care Trusts (PCT) such as my local one, South Cambridgeshire PCT, which is currently 8% above target.
"It is forecasting deficits and is above target, but in the Secretary of State's fantasy world it has more money than it needs.
"Across the country, PCTs are running deficits, demonstrating that the formula is way out by comparison with actual need.
"The Secretary of State is promising money tomorrow while the NHS has deficits today."
North south divide?
Some Primary Care Trusts are blaming a shift in funding from the "well funded" South to deprived areas in the North.
So why can some health providers manage to break even, while others cannot?
Is there an issue of too many Primary Care Trusts duplicating bureaucracy?
Or is it simply down to there not being enough good managers around?
Has the government made a hash of reforming the health commissioners?
Politics Show
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