Wolverhampton NHS Trust to miss savings target by £10m

A report by auditors KPMG says the trust is at "significant risk" of missing its target set out in the NHS cost improvement programme (CIP) for 2019.

The scheme requires all NHS trusts to make annual savings by increasing efficiencies and reducing costs.

Bosses at the Royal Wolverhampton NHS Trust said progress in meeting the savings had been hit by "significant medical staffing challenges".

Other efficiencies can include renegotiating contracts with suppliers and reducing overnight hospital stays for patients.

The trust, which runs New Cross Hospital, was told to save £24.5m in 2019, but according to auditors had only managed savings of £8.47m by the end of September.

In response trust bosses have reduced their annual target to around £14.5m, leaving savings of more than £6m currently outstanding.

The KPMG report says it is "not yet clear" how extra Government funding for the NHS will benefit the Royal Wolverhampton NHS Trust.

It said trusts were operating in a "challenging" financial environment, with a key risk pinpointed as achieving CIPs set out by the NHS.

The report said: "At month nine, the trust had achieved £8.47m of CIP savings, compared to the budgeted plan of £16.93m – 50 per cent of the year to date target.

"The trust had undertaken further work to pinpoint its pay pressures.

"It has concluded that whilst recruitment has been more successful than before, significant medical staffing challenges remain that are not expected to be satisfactorily resolved in the short-term."

The Royal Wolverhampton NHS Trust's board report from October 7 said there was "a lack of progress" on the CIP.

It said: "At month five, the trust is forecasting to deliver £14.398m, leaving a shortfall of £10.102m against the CIP target."

Trust spokeswoman Amy Downward said the trust was confident of achieving its new savings target. "The trust is currently planning to deliver £14.5m of CIP savings in the current financial year and plans to achieve its year end control total," she said.

Julian Donald, a Liberal campaigner in Wolverhampton, said: "Our NHS services have been cut to the bone as more and more savings have had to be made.

"It is time to put money into our health service – the government talks about more money it is time that we saw it. The NHS in the city is crying out for more cash.

"Every pound spent on efficiency savings is a pound not spent on doctors, nurses or medical treatments for local people.

"It is time for NHS SOS for the city."