Funding cuts of £160m contribute to a "vicious circle of ill health" in our region, a senior NHS leader has warned.
Samantha Allen, chief executive of the North East and North Cumbria Integrated Care System highlighted how changes to how NHS England funding is allocated which prioritise poor performance by NHS bodies rather than areas of poor health were keeping our region "anchored". In a report to the region's Integrated Care Board - and then in speaking in a board meeting - Ms Allen said the region was looking at a £50m financial deficit in the coming year.
She blamed this on falling funding, combined with inflationary pressures. She also said costs associated with historic Private Finance Initiatives (PFI) were more than £19m, as those fees are linked to inflation. The falling funding comes, she said, because despite poor long-term health outcomes, NHS England cash was often instead targeted at "poor performance".
At the helm of the ICS since last year's NHS reorganisation came into force, Ms Allen has led an ambitious plan to take on health inequalities and boost our life expectancy - which she said this week was now "going backwards". This plan focusses on how, in the words of health bosses, public health in the North East and North Cumbria is "way behind" the rest of the UK.
But now it has been revealed that central funding for the NHS in the North East and Cumbria fell by £100m over the last two years, and a further £60m reduction is set for next year.
In her report, Ms Allen also said: "NHS England (NHSE) have outlined a requirement for each ICB to reduce their running costs, by 30%, by 2025/6, with 20% of this delivered by the start of 2024/25 and the remaining 10% in 2025/6."
Now, having completed financial planning for the 2023/24 year, Ms Allen confirmed: "Overall, we have agreed a plan which will see our system with a deficit plan of £49.9m by the end of the year. Whilst we would never want to be in a position to post a deficit plan, the challenges we face across the system are such that this is unavoidable this year and our plan has been accepted by NHSE."
Speaking in the meeting on Tuesday, Ms Allen said: "We've commenced work on a medium to longer term financial recovery plan. Now we have got some opportunities there [to save money]. I think those are particularly through public sector reform and working particularly closely with our local government colleagues, and with some of the opportunities the devolution deals provide for to us, as well as our own goal and our own strategy of integrating services, particularly on community other services.
"But I don't think we should underestimate the challenges of which we're facing."
However, Ms Allen said the NHS in the North East and North Cumbria did not have the "support" needed to tackle the public health need. In her report, she wrote: "Whilst everyone accepts the challenges we face, which are generally a construct of our history and historic funding mechanisms and formulas, we are not getting the help we need to address them.
"In fact, it could be argued that the infrastructure/funding formulae designed to fund and support public services, in particular health services which incentivise poor performance and benefits populations that live longer (as opposed to dying younger) keeps our region anchored in this vicious circle of ill health."
She added: "We are all proud to live in a country that has a welfare state and health system which is free at the point of use. It is in our DNA to help those less fortunate than ourselves. Yet our funding infrastructure is constructed in such a way that does not target those who need it most."
The Government has described tackling health inequalities as a priority, setting up the Office for Health Improvement and Disparities to "focus on improving the nation’s health so that everyone can expect to live more of life in good health, and on levelling up health disparities to break the link between background and prospects for a healthy life".
READ NEXT:
