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One out of three London health trusts still in red
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05 June 2008
A report into NHS finances shows huge variations in financial performance, with one in three of the capital's primary care and hospital trusts still in deficit.
The inquiry by the Commons public accounts committee found services in more affluent parts of London were among those with the biggest problems.
These included Hillingdon Primary Care Trust which has a historic debt of £43 million - which has effectively been written off in the short-term, but will need to be paid off eventually. Kingston and Sutton are also struggling.
The situation means trusts in poorer areas that have balanced their books are bailing out some in well-off parts of the capital.
The committee found that patients were suffering because services were being frozen or postponed as health bosses diverted cash to cut their deficits.
The NHS in London does now have a surplus of £300 million following two years of being millions in the red.
But committee chairman Edward Leigh said that the NHS was not yet on the road to " longterm financial health".
He added: "Bad financial management at local level can have significant consequences for patients. There's a clear link between the financial performance of a body and the quality of its clinical services."
The committee's findings are based on 2006/07 accounts filed by health bosses. MPs did say that overall quality of healthcare seemed to have improved.
Yesterday, ministers announced tough action against trusts that underperform. Private firms could be drafted in to run failing hospitals for the first time.
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