Trusts deficits reduced but major challenges ahead for health service – McGimpsey

Health Minister, Michael McGimpsey said that while Trusts deficits had reduced significantly, the Health and Social Care service (HSC) still faced major financial difficulties.

At the end of September, the six trusts had combined deficits of around £76million. It was only after agreement had been reached on funding for swine flu that the Minister was able to relieve some of the financial pressures facing trusts.

An answer to an Assembly Question published this week incorrectly stated Trusts' existing deficits. Currently, Trusts actually face a combined deficit of £38.7million, even after the impact of acceptable contingency plan measures. However, the Department expects trusts to further reduce expenditure by a minimum of £7.7million.

Mr McGimpsey said: "All trusts are trying to deliver safe and effective services within a very limited resource and against a background of an unprecedented increase in demand for hospital services of some 20% in the last two years. Yet funding has only increased by 0.5% in real terms which is the lowest increase on record.

"As a result of this very difficult finanical situation, trusts had to submit contingency plans to deal with large deficits which had arisen. I had no option but to reject a number of their original proposals because of the unacceptable impact they would have had on frontline services.

"Subsequently, trusts submitted revised contingency plans, but I could only make decisions after I had received clarity on swine flu funding in early October.

"While these revised plans have reduced the deficit significantly, the Health and Social Care service continues to face a £31million deficit. All trusts except Belfast and the Northern are expected to break even. As a result, I have had no choice but to hold back funding to offset the outstanding deficits in the Northern and Belfast trusts to protect frontline services.

"This has meant that I have had to delay a range of important service developments including bowel cancer screening and some services for people with long-term health conditions such as stroke and heart disease. These are not decisions which I have taken lightly, but reflect the very hard choices I have to make every day because of the financial pressures we continue to face."

The Minister said that he had frequently warned of the severe financial difficulties his Department and the health and social care service continued to face.

Concluding he said: "I want to acknowledge the efforts made by trusts in trying to reduce their deficits and at the same time striving to provide high quality services to the public. I also want to thank all health and social care staff and the trade unions for their continued support and their commitment to delivering the best possible services to the public.

"I will continue to prioritise frontline services, but must stress that significant pressures lie ahead. I need the continued support of the public and the Assembly in order to protect health and social care services for everyone in Northern Ireland.”

Notes to editors:

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