§ Mrs. ClwydTo ask the Secretary of State for Wales what assessment he has made of the role of financial targets in assisting NHS trusts to provide a professional health care service. [2823]
§ Mr. Win GriffithsFinancial targets are an important element in ensuring that a professional healthcare service is provided most efficiently within the resources available.
§ Mrs. ClwydTo ask the Secretary of State for Wales what assessment he has made of the financial position of Welsh(a) health authorities and (b) trusts at the end of the financial year 1996–97. [2818]
§ Mr. GriffithsUntil the annual accounts of both health authorities and NHS trusts are received it is not possible to make an accurate assessment of their financial positions.
§ Mrs. ClwydTo ask the Secretary of State for Wales which of the (i) Welsh health authorities and (ii) Welsh NHS trusts have been reported to him as being likely to be in deficit in(a) 1996–97 and (b) 1997–98; and what are the arrangements for carrying over of deficits. [2819]
555W
§ Mr. GriffithsSubject to the final accounts position, health authorities have indicated a financial out-turn as follows:
Health Authority Forecast Surplus/(Deficit) 1996–97 Morgannwg (1.370) Dyfed Powys (7.394) Gwent (1.440) Bro Taf (8.029) North Wales (6.541) The table summarises the latest returns from health authorities of forecast out-turn based on an income and expenditure basis, which attempts to calculate the total resource costs incurred in any one financial year. The figures are provisional. All authorities succeeded in meeting the requirement to remain within their notified cash limits for the financial year 1996–97. Cash limits reflect the actual liquidity requirements of authorities to meet liabilities as they arise.
The following trusts are reporting a deficit position for 1996–97:
Morriston—this trusts' financial performance was debated by the Welsh Affairs Committee report and a copy of its findings is available in the Library of the House.Carmarthen—this was a planned deficit and the trust achieved a year on year break-even position.North Glamorgan—this was due to a technical adjustment in relation to an accounting treatment for early retirements.Pembrokeshire—this was due to a technical adjustment in relation to an accounting treatment for early retirements.Morriston NHS Trust is in the process of drawing up a recovery plan to be agreed by commissioners and will be expected to return to a balanced position within agreed timescales. It is too early in the financial year to forecast the likely out-turn for 1997–98.
As health authorities deal with cash figures the carrying over of deficits is not applicable. However, the present arrangement for the carrying over of deficits for trusts is that they are required to devise a recovery plan, in conjunction with their respective commissioners, and would be expected to return to a balanced position within an agreed timescale.
§ Mrs. ClwydTo ask the Secretary of State for Wales what assessment he has made of the long-term financial position of Welsh(a) health authorities and (b) NHS health trusts. [2820]
§ Mr. GriffithsThe Government is currently reviewing the financial position of the NHS in Wales and we will be in a better position to do so when the audited accounts have been received. We have announced a review of the number and configuration of NHS trusts to identify a more effective way of delivering services and this will realise considerable savings. We are also reviewing the formula for distributing resources to health authorities.
§ Mrs. ClwydTo ask the Secretary of State for Wales if he will institute an annual investigation into the effectiveness of financial targets in the NHS as a means of highlighting relevant trends in financial performance. [2821]
556W
§ Mr. GriffithsThe effectiveness of financial targets and trends in financial performance in the NHS are subject to continuous review.
§ Mrs. ClwydTo ask the Secretary of State for Wales if the requirement for NHS health trusts in Wales to break even, year on year, allows a trust with a surplus in one year to budget for a deficit in the following year. [2822]
§ Mr. GriffithsYes. However, should a trust forecast a year end deficit, for which they did not have sufficient reserves, it would be necessary to prepare a recovery plan which would be formulated in conjunction with commissioners. The trust would be expected to return to a balanced position within an agreed timescale.