Financial management in the NHS

National Audit Office and Audit Commission report (90 pages, PDF) on the 2004/2005 accounts of NHS bodies in England. NHS revenue expenditure amounts to £66 billion, with a deficit of £251 million. Summarised accounts (205 pages, PDF) are provided separately.

The causes of the deficit are not explored in detail, but the report accepts that the concerns set out by some NHS bodies in relation to the higher than expected costs of national initiatives such as the Agenda for Change pay system, the new contracts with consultants and with GPs and the need to meet targets for access and service provision may provide part of the answer.

The report also notes that unaudited year-end figures for 2005/2006 show a deficit of £536 million. Details are available in the NHS Chief Executive's report (links to several PDF files).

Filed under Healthcare, NAO.

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