Double cash savings ploy under fire

Reporter: Lobby Correspondent
Date published: 02 June 2011


Hospital bosses have come under attack from Oldham MP Michael Meacher - for trying to save almost double the amount of cash required as part of Government cuts.

The Pennine Acute Trust, which runs the Royal Oldham, Rochdale Infirmary, North Manchester and Fairfield General announced earlier this year it would lose up to 1,000 jobs as the Trust aims to save at least £42m by April, 2012.

The Department of Health has said it wants efficiency savings of 4 per cent for each of the next five years from Trusts

But the savings being sought by Pennine are significantly higher.

Oldham West and Royton MP Michael Meacher believes the savings are nearer eight per cent.

The Labour MP, along with Oldham East and Saddleworth MP Debbie Abrahams and Ashton MP David Heyes, attended a meeting with health chiefs and were told some of the additional cuts were needed to deal with higher than expected inflation, tough financial penalties including emergency re-admission after surgery and to try and end 2011/12 with a “modest” surplus. As part of the Government’s reforms of the NHS in England every hospital is expected to become a foundation trust. But to do that they must satisfy the financial regulator they can balance their books.

Mr Meacher said: “This is a very serious matter.

“I questioned that whether in the current financial climate the Trust can really budget for a surplus.

“I feel the money would be better used to preserve existing services.

“I understand the Trust wants to achieve Foundation Status and one of the criteria is a surplus but what worries me is they are putting too much emphasis on this at the expense of other services.

“I raised the question of increase in waiting times at the Royal Oldham because of the closure of emergency services at Rochdale which in turn increases delays at Oldham with patients being taken there which is a serious issue.

“I was told the Trust hoped the problem would be rectified by August.”

At the meeting Mr Meacher also raised concerns over staff morale and patient care given the size of the savings trying to be made.

A spokesman for The Pennine Acute Hospitals NHS Trust said, “We had an extremely positive and helpful meeting with our local MPs.

“We talked about quality of care, the financial situation and the measures that the Trust is taking to ensure that it delivers clinical services while remaining within the budget allocations in 2011/12.

“Patient safety is our top priority and will not be compromised; the care we provide to our patients must not suffer as we work smarter and more cost effectively.

“In managing our financial situation, including cost improvement savings, it would be irresponsible not to plan at the highest level to meet the anticipated requirements.

“Pennine Acute Trust is no different to its neighbouring trusts in this regard.

“If we are able to reduce the level of the savings required then we will do so.

“We will make every effort to work more closely with our MPs.”