Union warns of cost-cutting plans for the NHS
Aug 23 2010 by Adrian Pearson, The Journal
THOUSANDS of health workers and hundreds of beds across the region are to be axed over the next four years under multi-million pound cost-cutting plans, a union has warned.
Cuts to staff and funding, exposed in documents exclusively released to The Journal by the Northern Royal College of Nursing (RCN), appear to undermine the Coalition Government’s pledge to protect frontline NHS services.
The nurses’ union says that out of £800m in savings, around £369.5m will be permanently cut from health budgets in the North East and Cumbria.
There will be 1,750 fewer healthcare workers and 403 fewer beds within four years which could severely affect patient care, putting lives at risk.
The RCN has obtained information from every North East Foundation Trust and Primary Care Trust (PCT) in the region detailing plans for cost-cutting exercises, job losses and bed reductions.
Health bosses estimate they will need to secure £800m cost efficiencies by 2014 and all savings will be reinvested directly into frontline services.
They insist changes being made will substantially improve patient care and are a result of a new operating framework, which focuses on offering more services at home and in the community.
Glenn Turp, regional director of the RCN, said: "There is a mismatch between what is being said by Government, who state they are protecting the NHS budget, and the reality on the ground, which is that many individual trusts locally are facing an extremely difficult financial situation.
"The chief executive of the NHS has written to trusts asking them to make multi-million pound cost savings, but these cost savings are supposed to be reinvested in frontline services like nurses.
"Let’s be clear. The RCN supports new investment in frontline services and by no means do we think that all cost efficiencies are wrong. But they do need to be justified on clinical grounds.
"The problem we have is that we have the first half of the equation – where the cuts are happening – but not the second half of the equation, where the money is going to be reinvested.
"It’s inevitable that when trusts announce cuts to beds, staff or other areas, but do not announce new investment of equivalent value in, for example, key clinical staff, the suspicion is that this is not a genuine reinvestment programme, but just plain old fashioned cuts.
"There are huge changes being made in the North East and because of the extent of the number of cuts, if we fail to take into account the amount of patients there are then lives will be put at risk."
NHS County Durham and Darlington is undertaking the biggest cost-cutting exercise in the region, with a £200m reduction over the next three years.
County Durham and Darlington NHS Foundation Trust aims to make £60m cost efficiencies by 2014, including £20m in 2010/11. The trust is also cutting 300 beds and 300 nursing jobs will be lost through "natural wastage".
Newcastle Hospitals NHS Foundation Trust will reduce their spending by £27m this year while City Hospitals Sunderland NHS Foundation Trust will save £22.5m this year and Northumbria Healthcare NHS Foundation Trust is undertaking a £15m cost-cutting exercise this year.
Up to 300 jobs will go at Northumberland, Tyne and Wear NHS Foundation Trust over the next two years, Cumbria Partnership NHS Foundation Trust aims to reduce jobs by 200 and the RCN believes Gateshead Health NHS Foundation Trust is scaling 103 beds back.
Health bosses say savings will ensure the region maintains a leading position in efficient and effective care to patients.
David Stout, executive director of finance and communications at NHS North East, said: "We need to identify where time and money can be saved, and continue to improve the quality of services and the experience of patients.
"We have to do this urgently as we anticipate cost increases linked to inflation, new technology, an expanding drugs bill and new pressures on services – especially linked to people living longer.
"To cover these additional costs and new pressures, in the North East, we estimate we will need to secure annual efficiency and productivity savings of approximately £800m by 2014 and we are working with local NHS organisations to deliver this.
"The savings made will be reinvested directly in frontline NHS services so that we can meet the future challenges of coping with an ageing population, the introduction of new treatments and technologies, and increasing our focus on prevention.
"This forms part of wider work to increase efficiency and productivity in the NHS and ensure that taxpayers' money is invested wisely to deliver real benefits for patients".
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