Southend Hospital set to go into the red due to NHS cash crisis

Southend Hospital

Southend Hospital

First published in News Exclusive by

HEALTH chiefs could struggle to pay for vital treatments because of a worsening NHS cash crisis.

Southend Hospital is expected to plunge into the red this year because of financial troubles at the groups which pay for NHS health care across south Essex.

Both Southend Clinical Commissioning Group and its counterpart in Castle Point and Rochford could struggle to fund treatments at the hospital and community clinics this year as they try to find millions of pounds in savings.

The groups, responsible for funding hospital and community clinic treatments, are holding emergency talks with health bosses to discuss how to fund NHS care without impacting on services due to financial strains.

The Echo revealed last month how Southend Hospital was facing a £4.8million funding black hole in its around £270million budget this year, due to not getting the full money it requested from the clinical commissioning groups.

Bosses at the commissioning groups have now confirmed it is due to their facing their own financial difficulties.

Nationally, NHS England has set a requirement for all clinical commissioning groups to keep a surplus of 1 per cent of their annual budgets.

This means both Southend and Castle Point and Rochford groups, which have annual budgets of around £200million, are breaching this as they should have surpluses of around £2million each.

Southend Clinical Commissioning Group has also gone into the red while it struggles to find £8million savings, with a deficit of £2million expected this financial year.

James O’Sullivan, Southend Hospital’s chief financial officer, expects the trust to go into deficit as a result.

He said: “The trust is projecting a deficit of £720,000 in the current financial year.

“The whole of the local health economy is facing a financial challenge and we will to continue to work with our commissioners to identify opportunities to deliver the best value for money in our provision of healthcare.”

A joint statement from both commissioning groups said: “It is recognised across the south east Essex healthcare system that in order to achieve affordability of services offered to patients without compromising on clinical quality or patient outcomes, the system must operate collectively and in a different way.

“As the lead commissioner for hospital services in south east Essex, Southend Clinical Commissioning Group is working with the hospital to deliver a joint improvement plan, which will help create a more sustainable health economy in south east Essex.

“The groups are also working on other schemes aimed at supporting the hospital and taking the pressure off A&E.”

Comments (12)

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4:32pm Thu 5 Jun 14

jolllyboy says...

NHS reforms are mad at a time of austerity. Health and lives cost money and it has to be paid.We have less hospital beds now with more population which is ridiculous since care in the community or home is falling behind in quality and costs more. Time to reduce the top levels and let those who know what they are doing in to run the hospitals, not administrators who are not medical people.
NHS reforms are mad at a time of austerity. Health and lives cost money and it has to be paid.We have less hospital beds now with more population which is ridiculous since care in the community or home is falling behind in quality and costs more. Time to reduce the top levels and let those who know what they are doing in to run the hospitals, not administrators who are not medical people. jolllyboy
  • Score: 5

4:45pm Thu 5 Jun 14

runwellian says...

What a shame the Southend CCG felt the need to fine the hospital fro missing targets.
Fines have to be paid for out of hospital funds that should have been used to improve services, not deprive them of cash.

It is clear that demand for services outstrips the supply available so why is that the hospitals fault?

The clinical commissioning group is made up mainly of GP's, so who meets the needs f their patients whilst they sit in meetings fining hospitals for not meeting targets?

A vast amount of money could be saved if Southend CCG, as the smallest, merged with another group as it obviously needs to duplicate services available elsewhere.

They criticise the hospital but it is a bit like the 'kettle calling the pot black'!
What a shame the Southend CCG felt the need to fine the hospital fro missing targets. Fines have to be paid for out of hospital funds that should have been used to improve services, not deprive them of cash. It is clear that demand for services outstrips the supply available so why is that the hospitals fault? The clinical commissioning group is made up mainly of GP's, so who meets the needs f their patients whilst they sit in meetings fining hospitals for not meeting targets? A vast amount of money could be saved if Southend CCG, as the smallest, merged with another group as it obviously needs to duplicate services available elsewhere. They criticise the hospital but it is a bit like the 'kettle calling the pot black'! runwellian
  • Score: 10

4:56pm Thu 5 Jun 14

billybloggs says...

perhaps they could save money by leaving the blood testing in-house instead of selling out too private enterprise that would save money about 10 million
perhaps they could save money by leaving the blood testing in-house instead of selling out too private enterprise that would save money about 10 million billybloggs
  • Score: 15

4:58pm Thu 5 Jun 14

whateverhappened says...

NHS budget £42 billion should be enough really!
NHS budget £42 billion should be enough really! whateverhappened
  • Score: 0

5:44pm Thu 5 Jun 14

Keptquiettillnow says...

Its all John Gilham's fault.
Its all John Gilham's fault. Keptquiettillnow
  • Score: 5

6:16pm Thu 5 Jun 14

Keptquiettillnow says...

billybloggs wrote:
perhaps they could save money by leaving the blood testing in-house instead of selling out too private enterprise that would save money about 10 million
Or the catering which is now in the hands of an outside contractor.
Its, the NHS, your NHS, is going bit by bit. Tax payers money being given to private companies
[quote][p][bold]billybloggs[/bold] wrote: perhaps they could save money by leaving the blood testing in-house instead of selling out too private enterprise that would save money about 10 million[/p][/quote]Or the catering which is now in the hands of an outside contractor. Its, the NHS, your NHS, is going bit by bit. Tax payers money being given to private companies Keptquiettillnow
  • Score: 14

6:43pm Thu 5 Jun 14

Living the La Vida Legra says...

Beggers belief !!!!!!!!!
Beggers belief !!!!!!!!! Living the La Vida Legra
  • Score: 6

3:26pm Fri 6 Jun 14

jayman says...

This is no 'Financial crisis' This is the 'Tory plan'
This is no 'Financial crisis' This is the 'Tory plan' jayman
  • Score: 3

3:30pm Fri 6 Jun 14

jayman says...

whateverhappened wrote:
NHS budget £42 billion should be enough really!
Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.
[quote][p][bold]whateverhappened[/bold] wrote: NHS budget £42 billion should be enough really![/p][/quote]Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party. jayman
  • Score: 1

4:31pm Fri 6 Jun 14

Living the La Vida Legra says...

jayman wrote:
whateverhappened wrote:
NHS budget £42 billion should be enough really!
Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.
Do you get paid to turn everything into a political rant. It's so tiresome!!!
Is there an other tune you can play? Or are you one dimensional?
[quote][p][bold]jayman[/bold] wrote: [quote][p][bold]whateverhappened[/bold] wrote: NHS budget £42 billion should be enough really![/p][/quote]Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.[/p][/quote]Do you get paid to turn everything into a political rant. It's so tiresome!!! Is there an other tune you can play? Or are you one dimensional? Living the La Vida Legra
  • Score: -3

7:30pm Wed 18 Jun 14

essexjack07 says...

jayman wrote:
whateverhappened wrote:
NHS budget £42 billion should be enough really!
Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.
Overall, NHS England has a budget of £95.6 billion to deliver the mandate.
[quote][p][bold]jayman[/bold] wrote: [quote][p][bold]whateverhappened[/bold] wrote: NHS budget £42 billion should be enough really![/p][/quote]Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.[/p][/quote]Overall, NHS England has a budget of £95.6 billion to deliver the mandate. essexjack07
  • Score: 0

7:33pm Wed 18 Jun 14

essexjack07 says...

Living the La Vida Legra wrote:
jayman wrote:
whateverhappened wrote:
NHS budget £42 billion should be enough really!
Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.
Do you get paid to turn everything into a political rant. It's so tiresome!!!
Is there an other tune you can play? Or are you one dimensional?
The whole NHS is a political minefield, always easier to bury your head in the sand, there is no other tune.
[quote][p][bold]Living the La Vida Legra[/bold] wrote: [quote][p][bold]jayman[/bold] wrote: [quote][p][bold]whateverhappened[/bold] wrote: NHS budget £42 billion should be enough really![/p][/quote]Indeed. It should and 'is' enough. CCG's and government dis-involvement is key to the Tory plan of making the NHS financial non-viable, by design no by accident. Faceless CCG's take the hit, clear blue water between this national scandal and the Tory party.[/p][/quote]Do you get paid to turn everything into a political rant. It's so tiresome!!! Is there an other tune you can play? Or are you one dimensional?[/p][/quote]The whole NHS is a political minefield, always easier to bury your head in the sand, there is no other tune. essexjack07
  • Score: 0

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