A perfect storm: an impossible climate for NHS providers’ finances?

This report shows a strong link between the financial performance of an acute or specialist trust and the quality of services it provides to patients. It notes an acceleration in 2014/15 of the worrying trend of rising deficits for NHS providers. According to the Forward View the NHS will need to make efficiency savings of £22bn by 2020/21 to live within the planned budget. The authors suggest that much of the planned savings from pay restraint for permanent staff may be lost due to higher pension contributions and rising agency staff costs. They find no clear guidance about how the NHS will save the amount required. They conclude that failure to spread good practice is not a result of those in the NHS wilfully ignoring opportunities to improve, but reflects the challenges of transforming a complex service. They call for national action to tackle the gap between the need for skilled staff and supply of suitably trained workers, and for financial and practical support for providers to achieve productivity savings .