Health chiefs set to make 'difficult decisions' due to £350m NHS deficit
Members of Cumberland Council's health overview and scrutiny committee are due to meet at Carlisle's Civic Centre on Thursday (May 22) to hear the Lancashire and South Cumbria ICB update.
The report states: 'Without support funding in 2024/25, the end of year system deficit would have been approximately £350 million.
'The ICB's annual budget for 2025/26 is approximately £5.4 billion and immediate action is required to reduce spending.
'The challenge heading into 2025/26 is considerable and will result in the need to plan service provision and work with partners in a different way.
'Despite the challenging financial position, the ICB has set out plans to reduce waste and duplication and reconfigure services.
'This will improve experience and outcomes for people living in Lancashire and South Cumbria and make services fit for the future.
'Working with Cumberland Health Overview and Scrutiny Committee is crucial because it ensures that the ICB services align with the needs and priorities of the population and enhancing the quality of care we provide to the residents of South Cumbria.'
According to the report the ICB has entered into a National Recovery Support Programme and in 2024/25, Lancashire and South Cumbria was one of several systems subjected to an 'investigation and intervention process'.
It adds: 'Despite support from NHS England North West, and the hard work of colleagues across our system, we were not able to make the progress we had hoped to with our spending.
'As a result, NHS England (NHSE) recommended four organisations were placed into NHS Oversight Framework (NOF) Segment Four and for each organisation to receive intensive support from the national Recovery Support Programme (RSP).'
The affected organisations are:
NHS Lancashire and South Cumbria ICB;
Blackpool Teaching Hospitals NHS Foundation Trust;
East Lancashire Hospitals NHS Trust;
Lancashire Teaching Hospitals NHS Foundation Trust.
The report states: 'The main concerns from NHSE centre around our system's difficulty in managing financial deficits and meeting financial recovery plans.
'We recognise the severity of the situation that we are in – as such we welcome this additional support from NHS England for the ICB and our trusts.'
According to the report The RSP comprises of five strands:
The diagnostic (stocktake to identify the drivers);
Oversight and challenge: appointment of an NHS England employed improvement director; and regular board to board meetings;
Financial support to drive the improvement plan;
Targeted support for delivery (access to subject matter experts); and
Continuous review of the plan (review and monitoring meetings).
The report highlights a number 'difficult decisions' and it states: 'Our financial position means we will have to make some difficult decisions over the next few months.
'As a consequence, there will be some services that we are not able to make available, even if they are being rolled out across the country.
'Other examples may include ward closures where we are not providing value for money or working in the most efficient way, or delivering services in a different way to how they're currently provided.
'These decisions will require careful management, may not be quick to implement and, in some instances, will require engagement and consultation as per the NHSE service change process.
'Any proposed changes will be clinically led, subject to the necessary impact assessments, and we will commit to undertake the appropriate level of engagement with patients, members of the pubic, our staff and wider stakeholders.
'Despite significant financial challenges faced in the system, there are excellent services, positive examples of collaboration and passionate and dedicated staff to build upon to achieve the system's vision for improving health and care.
'There are opportunities to reduce waste, duplication and reconfigure services to outcomes for the population of Lancashire and South Cumbria and make services fit for the future.'
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