Health trusts 'miss cash targets'

HOSPITAL and health service trusts, the linchpin of the Tory reforms, have increasingly failed to meet financial targets set by the Government, according to an independent survey.

The analysis of the early years of the NHS market found that while 17 per cent of the first wave of trusts did not meet the target in 1991/92, by the following year the proportion had risen to 47 per cent.

The second wave of trusts 'did little better' according to The Fourth Newchurch Guide to NHS Trusts 1994, with 27 per cent failing to achieve the target - a return on capital of at least 6 per cent - in their first year.

Philip Hunt, director of the National Association of Health Authorities and Trusts, associate publishers of the guide, said: 'There is not much point having a market in the NHS which is competitive unless it is recognised that some will do better than others. Trusts are having to get involved in mergers. I think we are moving away from the structure of a district general hospital for every 200,000 of the population.

'Advances in technology, clinical safety and the training of junior doctors all suggest we will see smaller numbers of specialist units where excellence is concentrated. I don't know if the local general hospital will survive in its present form.'

The guide analysed financial returns of 157 of the first trusts to be established and found that 18 had 'severe liquidity problems'.

There are about 400 trusts with incomes ranging from pounds 15m to pounds 230m and from this month they are responsible for pounds 17bn worth of health care, 7 per cent of total government spending.

At the beginning of April hospital and community trusts represented 90 per cent of all hospital units.

Kingsley Manning, managing director of Newchurch and Company, business advisers, said the speed of the changes had taken policy-makers and managers by surprise. 'The pace of the changes has been staggering. Over 1 million employees have been transferred to new management structures. A robust system can absorb a small number of relative failures.'

Mr Manning forsees more trusts merging as their viability is fully tested in the NHS market. The report identifies 20 mergers or 'reconfigurations' to date.

The Fourth Newchurch Guide to NHS Trusts 1994; NAHAT, Birmingham Research Park, Vincent Drive, Birmingham B15 2SQ; pounds 275 ( pounds 25 NAHAT members).

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Sales Executive or Senior Sales Executive - B2B Exhibitions

£18000 - £30000 per annum: Recruitment Genius: A Sales Executive or Senior Sal...

Recruitment Genius: Head of Support Services

£40000 - £55000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Warehouse Team Leader

£22000 per annum: Recruitment Genius: This industry leading company produces h...

Recruitment Genius: Business Development Manager / Sales - OTE £40,000

£20000 - £40000 per annum: Recruitment Genius: This IT provider for the educat...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory