Health trusts in financial trouble

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The Audit Commission's review of finances for 2006/07 found 31% of NHS trusts and primary care trusts failed to meet minimum requirements on use of resources.

A total of 104 of 335 organisations showed "inadequate performance", although the figure was down on the 39% for 2005/06.

Government predictions released in August showed a much healthier picture for this financial year, 2007/08.

But the bleak figures for last year have led the Commission to say it believes some trusts will be unable to get out trouble without help.

The report showed that almost one in 10 (8% of trusts and PCTs, or 27 of the total) scored lowest on use of resources but also on financial management, financial standing and value for money.

A total of 27% of trusts and PCTs (91 of the total) performed well or strongly on use of resources, up from 12% in 2005/06.

The NHS ended 2005/06 £547million in deficit, but made a small surplus in 2006/07, of £515million, after an aggressive Government drive to get the NHS into the black.

A total of 77% of NHS bodies achieved year-end financial balance in 2006/07, compared with 67% in 2005/06.

The report said: "The financial position to date in 2007/08 appears to be equally positive. Recent figures issued by the Department of Health show that 22 organisations are forecasting that they will fail to achieve financial balance in 2007/08, compared to 81 in 2006/07. The Department of Health is forecasting an aggregate surplus of £983million at the end of the financial year."