Turnaround by trust facing a £30m deficit

12:47pm Friday 14th July 2006

HEALTH care bosses have turned around the fortunes of New Forest Primary Care Trust just months after it appeared to be heading for a £30 million deficit.

The Audit Commission highlighted the seriousness of trust's situation last summer.

Now the trust has dug itself out of a hole after making job losses and with a £12.1m loan from the Strategic Health Authority.

The Audit Commission has just published advice to the boards and executive members of PCTs across the UK.

It says "the principal business" of PCTs is commissioning services from health care providers.

In addition, "PCTs should publish the financial rationale underpinning all significant changes in commissioning policy and all commissioning decisions involving the investment of significant new resources, alongside any consideration of social or clinical issues."

New Forest PCT has responded, saying it tackled the financial issues raised "in particular by controlling expenditure and establishing a new management team to address the extensive and difficult agenda we faced."

Chief executive John Richards said: "Our results in 05/06 show that, bucking the trend, New Forest PCT has achieved turnaround and is well on the road to recovery, without external intervention.

"Facing a £30m projected deficit at the start of the year, the PCT hit all its targets, delivered massive savings and, with the help of planned support from the Strategic Health Authority in return for meeting its promises, managed to break even."

The savings have been made with the loss of 55 full-time equivalent posts from its 1,037 workforce, putting new procedures in place to gain control of expenditure, driving down costs and helping providers to reduce their costs, and giving clinical leaders scope to make changes, avoiding unnecessary admissions and getting patients home early with support.

Mr Richards said: "Our path towards recovery has been painful for our staff and has required grim determination and self belief.

"We are pleased to share the lessons we have learned with others."