Inappropriate Bean-Counting Creates Impossible Challenge for Local Hospital Trust

9.00.00am GMT Mon 11th Dec 2006

Inappropriate financial formula

Commenting on today's Guardian expose of the dire financial predicament of 13 hospital trusts including the West Hertfordshire Trust covering St Albans, Sandy Walkington, Liberal Democrat candidate for St Albans said:

"These stark figures uncovered by the Guardian under Freedom of Information rules demonstrate the impossible challenge faced by the West Hertfordshire Trust. It has the eighth worst cumulative deficit of all 121 trusts in the survey, losing nearly £10 million in the most recent 6 month period. It cannot possibly make up its cumulative deficit of £53 million pounds without totally compromising patient care and patient safety.

"The Audit Commission has heavily criticised the way that the Treasury and Department of Health rules create an almost insurmountable burden for trusts that get into deficit. They called for an end to the current accounting system which was never meant to be applied to hospital trusts. Patricia Hewitt today announced new rules but explicitly confirmed that "the new rules will not in themselves provide a solution for organisations with financial problems."

"Bean counters in Whitehall are driving decisions about Watford, Hemel Hempstead, St Albans and Hatfield hospitals. In the process they are over-riding local knowledge and clinical experience. Of course there has to be financial discipline. But there is no sense in a triple-whammy of having every pound of overspend resulting in one less pound of government grant the following year together with a requirement to pay back the overspend in full at the same time. No wonder the Trust is reeling under these ludicrous requirements."

ENDS

For more information, please contact Sandy Walkington Tel 07802 177317

The Guardian article can be found at http://politics.guardian.co.uk/publicservices/story/0,,1969154,00.html