Financial crisis for mental health care


28 April 2006 15:55

Mental health bosses have admitted that patient services will have to be compromised after revealing even worse financial difficulties, which could lead to the loss of 120 jobs.

The Norfolk and Waveney Mental Health Trust Partnership announced yesterday that the estimated £5.2million shortfall in funding for 2006/7 would be higher than expected.

Although an amount has not been confirmed, and negotiations are still ongoing, it appears job losses and service cuts are inevitable.

The trust's announcement follows a dire week for health services in Norfolk after the Norfolk and Norwich University Hospital announced that up to 450 posts might be culled.

There is already a recruitment freeze in place at the mental health trust and limitations have been put on agency and bank staff as the trust seeks to meet spending targets.

A report to the trust, which runs institutions such as Hellesdon Hospital and the Bure Centre, in Norwich, said staffing costs make up 80 per cent of its expenditure.

Trust managers are now desperately conducting “risk assessments” into the areas where cost reduction will be made.

Speaking after yesterday's meeting trust spokeswoman Nicola Brown said:

“We announced earlier this month that the Trust faces an estimated £5.2million shortfall in funding for 2006/7. However, negotiations are still ongoing with our commissioners and it looks likely this figure will rise. Although we have had an excellent financial track record, either breaking even or delivering a surplus over the last seven years, pressures and deficits elsewhere in the NHS require us to find these savings from our own budgets.

“We make no secret of the fact that services will be compromised and that we will not be able to deliver the same level of service that we have spent many years developing. We still do not know the consequences of what lies before us.

“We have been keeping our staff and stakeholders informed on a regular basis and will continue to do so. Any redundancies will be as a last resort only and we hope to manage any reduction in staff numbers through disestablishing vacant posts, reducing the use of temporary staff and continuing our tight control of vacancies.”

Yesterday, the Evening News reported how angry nurses at the N&N said they would not rule out strike action over plans to axe 450 jobs.

A decision by the trust board of the hospital to plug holes in a £14.8 million deficit by cutting the jobs was announced at a meeting on Wednesday.

One idea hospital bosses have mooted to claw back cash is to attract more patients from neighbouring counties, so the hospital can get more cash from other primary care trusts.

Chairman David Prior said the hospital would do “all that is possible” to avoid job losses.

“We will be looking at more flexible working, shift patterns and out of hour's services,” he said.

“We will try to make the savings in every other possible way before redundancies are made.”

More than 100 jobs will also be axed from the James Paget Hospital, in Gorleston.

Norwich North MP Ian Gibson said: “I am sad to hear the mental health trust is part of the general problem with the NHS.

“I will be pleased to take this up with Patricia Hewitt when we have a meeting with her next month about the financial crisis hitting Norfolk health services.”

Do you work at the hospital and are worried about the cuts? Or are you a patient with concerns? Write to Evening News Letters, Prospect House, Rouen Road, Norwich, NR1 1RE, email eveningnewsletters@archant.co.uk or visit www.eveningnews24.co.uk

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