Co-ordinator: Marna Blundy, 4 Botallack Moor, St Just, Penzance, Cornwall TR19 7QH
Co-ordinator: Marna Blundy, 4 Botallack Moor, St Just, Penzance, Cornwall TR19 7QH
Tel: 01736 788107 email: westcornwallhealthwatch@yahoo.co.uk
PRESS STATEMENT 13.03.06
In a hard-hitting statement issued by the committee of West Cornwall HealthWatch, the campaigning health watchdog has pointed the finger firmly in the direction of NHS management for the large financial deficit announced last week. The group says:
“We were extremely disappointed and concerned to hear the news that the Royal Cornwall Hospitals NHS Trust (RCHT) has serious financial difficulties, and has accordingly announced 300 job losses, ward and theatre closures at the three hospitals for which it is responsible (Treliske in Truro, St Michaels in Hayle and West Cornwall at Penzance.)
Readers may think that all NHS Trusts are facing similar difficulties. In fact, nationally just 6% of NHS Trusts account for 50% of the total overspend of the NHS; regrettably, RCHT is one of them. Yet it seems that neither the Trust nor the Strategic Health Authority management could see this coming. At the Trust’s AGM last September Brian Milstead, its Chief Executive, reported record investment in acute hospital services - a 9% increase year on year since 1997. He went on to state that Trust was on target to achieve a balanced income and expenditure position at the end of the next financial year (2006/07).
Furthermore Judy Leverton, Chair of the South West Peninsula Strategic Health Authority (SHA), said in August 2005 in response to a request for an Independent Review of financial management, governance and service delivery of RCHT:
“I understand the concerns but I am not convinced that a review is in fact the right way forward. Firstly, there is the overall ability of the organisation to operate in a cost efficient fashion. The NHS uses a system of reference costs (comparators) for making judgements and RCHT consistently shows as delivering a good ratio between its income and the amount of work done. Secondly, there is the internal financial governance of the organisation. This is a Board level responsibility with performance monitored through audit arrangements. Thirdly, there is the annual agreement (service level agreement) set between the Trust and the PCTs in Cornwall who commission its services. This sets out the relationship between income and work for the year ahead. This process resulted in an agreement for this year and the Trust is now committed to delivering on both the financial and activity components of it. My organisation monitors all aspects of progress on this. My belief is that plans and accountabilities are in place for aspects that seem to me to be relevant and I would, therefore, not wish to initiate a review”.
So why has it all gone so horribly wrong? The answer is ‘management’ or, to be more precise, bad management. This situation is not about the money we have not had. It’s not about the historical debt in Cornwall. That was already well known, documented and catered for. This situation is about the money NHS management in Cornwall has had in the current year and what they have done with it. Regrettably, it has not been spent wisely, management has failed, and in so doing they have let the people of Cornwall down. Three hundred people will now be out of a job and patient care will inevitably suffer. Even worse, there are now real concerns for the future delivery of services and the very existence of our hospitals in Penzance and Hayle. The people who have done this, whoever they are, are paid huge amounts of money and should not be allowed to get away with it. They should be called to account and made to take responsibility for their actions. Failure is not an option acceptable to the people of Cornwall.
West Cornwall HealthWatch, in common with the Mayor’s Parlour Campaign Team and the unanimous support of the community as voiced in public meetings in the Autumn, has been calling for an independent review into acute health provision in this county for many months now. A large financial deficit, with the resulting cuts and cancellations, is not an inevitable fact of life for every NHS Trust at the end of every financial year, even though this has been the tendency in Cornwall in recent years. We cannot simply call for more and more money to solve the problem. Unless and until the Cornish health management knows how to spend its money wisely we shall find ourselves again and again in this dreadful situation. Twelve months ago HealthWatch Vice-chairman Joe McKenna said “The public has lost all trust in the Trust and a fresh start is needed, with a new team not associated with today’s unacceptable position.” Unfortunately the old team remained, and twelve months later we are still saying the same. We call upon the NHS to act quickly and positively in identifying the person/s responsible for this situation, and any areas of malpractice or negligence in the management of the Trust and its finances; and to consider whether further action against individuals should be considered.”
HealthWatch will be holding its AGM on Friday 24th March at 7.30pm in Committee Room No 1, Penwith District Council Offices, St Clare, Penzance, starting at 7.30pm. The financial crisis in the RCHT will be one of the issues discussed, and all supporters are invited to attend.