Swine flu funding helps relieve some pressure on Trusts

Health Minister Michael McGimpsey said that the recent agreement on funding for swine flu means he can relieve some of the financial pressures currently facing health trusts.

Given the clarity around his budget, the Minister has been able to reject a number of proposals in the trusts contingency plans which would have had a significant impact on frontline services. This included a proposal to close 150 beds in the Belfast Trust area.

The Minister said: “Everyone is only too aware of the significant financial difficulties my Department and the Health and Social Care (HSC) service is currently facing. We have the challenge of finding £700million in efficiency savings, coupled with addressing the years of under-investment which means our services are simply not as good as those in the rest of the UK.

“I have carefully considered all of the trusts contingency plans which were needed to address the funding shortfalls I faced. This included help in meeting the £64million estimated costs of swine flu, to which I contributed £32million. Now that I have clarification on my total budget for 2009/10, I am able to reject those proposals which would have had a significant impact on front-line services and had caused concern among the public.

The position has also been alleviated by the latest actuarial assessment of the necessary HSC employers’ contribution to staff pensions in 2009-10, which has the effect of reducing the cost pressures affecting Trusts.

In addition, the Minister also confirmed that some £20million is now being released to trusts to sustain work to achieve waiting time targets. This will include the resumption of independent sector activity where this is critical to maintaining reduced waiting times.

He continued: “However, given the fact that demand for services is rising at 9% each year while funding this has grown by only 0.5% above inflation, I have had to make some very difficult decisions and trusts still face considerable challenges in balancing their books. This has included delays to much-needed service improvements. In addition, there will be a continued focus on bringing down the costs of Agency staff and a wide range of stringent cost control measures.

“I will now be writing to the trusts to advise them of my decisions. I recognise that all trusts face major challenges in delivering safe and effective services, within a very limited resource. I want to thank all staff across the HSC for their tireless work in providing high quality services to patients against background of ever increasing demand.

“Whilst I will continue to prioritise frontline services, significant pressures lie ahead and I need continued support in order to protect health and social care services for everyone in Northern Ireland.”

Notes to Editors:

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