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".
