GPs who took on budgets under NHS reform are millions in the red

clock • 2 min read

General Practitioners (GPs) who have taken over budgets from Primary Care trusts (PCTs) under NHS reforms are sliding millions into the red.

According to GP publication Pulse analysis of financial data reported across 55 primary care trusts, two-thirds of shadow clinical commissioning groups (CCGs) reporting figures are currently missing their financial targets.

At present 29% of all PCTs are behind budget for 2011/12 and only 9% predict they will not meet their financial targets by April 2012.

Of the 29 CCGs who provided figures, 66% reported to be behind budget, whilst 4 of the 20 CCGs who make end-of-year forecasts reported they would still be in deficit at the end of the financial year despite having introduced tough measures to achieve their target.

The CCG analysis contained overall financial figures from NHS Cumbria, NHS Cambridgeshire and NHS Northamptonshire.

All or most budgets in these counties are already GP controlled.

NHS West Sussex is amongst the worst hit areas, with the PCT being £15m behind budget and because of overspending on acute care; its two CCGs are £9.1m and £13.6m behind budget.

In other counties NHS Barking and Dagenham are behind budget by a total of £2m. Their constituent CCGs is behind by £2.5m, £1.4m and £106,000 respectively.

Cumbria has initiated a CCG-led recovery plan, which involves 'a number of remedial financial measures.

In total, the net-shortfall for the 29 CCGs with figures amounts to £28m, which translates into an average shortfall per CCG of £967,000.

According to Dr Chaand Nagpaul, a negotiator for the GP committee of the BMA: "Costs are generated through modifications in coding and re-referrals."

He stated that the Government should concentrate on reforming the 'perverse' payment system that has encouraged over-activity.

A Department of Health spokesperson said:
"We do not think this information regarding shadow CCGs' financial positions represents a realistic picture.

"As described in the 2011/12 NHS Operating Framework, we expect PCTs and developing CCGs to work together to ensure that financial control and balance is maintained in 2011/12 and 2012/13.

"The DoH is ensuring organizations forecasting a deficit have plans in place for financial recovery, while continuing to improve the quality of services to patients."

More on PMI

General and Medical Healthcare joins amii
PMI

General and Medical Healthcare joins amii

PMI provider

Jaskeet Briah
clock 04 November 2024 • 1 min read
Benenden Health names Tom Woolgrove as CEO
PMI

Benenden Health names Tom Woolgrove as CEO

Former CII president

Jaskeet Briah
clock 29 October 2024 • 1 min read
Societal ageing and climate change adding to healthcare challenges
PMI

Societal ageing and climate change adding to healthcare challenges

AXA research shows

Jaskeet Briah
clock 14 October 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read