Financial crisis puts patients at risk

Hospitals are millions of pounds in the red despite unprecedented cash injections.

New figures reveal that top London hospitals have failed to balance their books this year, despite receiving the most generous budgets ever for patient care.

One teaching hospital is facing a deficit of £11million - about 10 times the overspend health chiefs normally consider acceptable.

The crisis has already had a serious impact on patients, with one hospital shutting an entire ward to get back on track before the end of the financial year.

Patient groups reacted with dismay today and warned of further cuts in services. They claim the deficits show hospitals still lack the funds to cope.

Figures from the capital's five Strategic Health Authorities show hospitals are £63.5 million in the red in total.

Four major trusts - Bart's and The London, North West London, Epsom and St Helier, and St George's - each face a shortfall of more than £5 million.

The worst case is St George's in Tooting - £11million in the red. A string of others, including the Royal Free, have shortfalls of more than £4million.

London hospitals have typically an annual budget of about £150million, with a deficit of one per cent or less generally considered acceptable. John Lister, director-of pressure group London Health Emergency (LHE), which put together the figures, said: "They are very worrying and they are just the tip of the iceberg.

"They are the deficits that trusts have not been able to sort out or cover up during the year, despite pressure on them to make it look as if everything is fine and they are delivering on financial targets.

"You cannot reduce deficits this

size without it hurting."

Chancellor Gordon Brown has confirmed that health spending is at its highest level in NHS history, with a total budget last year of £56 billion.

Government spending on health is rising at a rate of 7.3 per cent a year.

But inspection reports by the Commission for Health Improvement have highlighted continuing problems. These include high vacancy rates for midwives and nurses, long waits for out-patients to see specialists, excessive waits in casualty and unacceptable rates of hospital infection.

This year, Queen Elizabeth Hospital - £4.5 million in the red - said it

was temporarily closing 36 beds to reduce debt before 1 April.

Managers say the move, which added 600 patients to the hospital's waiting list, will save £200,000.

Critics such as the LHE say the extra money hospitals now receive as part of the Government's drive to improve the NHS comes with too many conditions attached.

Mr Lister said it was "quickly swallowed up by ambitious targets".

The chief executive of the St George's trust, Peter Homa, said that on this occasion the South-West London Strategic Health Authority had agreed to rescue the hospital from financial crisis.

Mr Homa added: "There is no doubt that this is a serious and challenging position for St George's.

"Work is now under way on a programme that will ensure the hospital achieves financial balance over the next three years, while at the same time protecting patient services. We expect to end the financial year in balance."

A spokesman for the NHS Confederation, the umbrella body for NHS Trusts, said big budget increases have presented new problems for hospital managers.

"Before, they were just trying to overcome constant shortages," he said.

"These days they can afford to be more ambitious. But they have to get the balance right."