New fears for
NHS in region
after £16.1m
deficit shock

Managers in North Yorkshire previously warned they would run up a £19m deficit on NHS care in the county in the 12 months to March. But latest figures show overspending of £16.1m in the four months to July alone.

The deterioration comes as management consultants KPMG have been appointed to carry out a 12-month review of hospital, GP and community services, with the aim of developing “pragmatic costed opportunities” to make short and medium-term savings.

Their recommendations are likely to prove highly controversial as part of turnaround plans to make NHS services in North Yorkshire affordable, triggering a major shake up shifting care out of hospitals and into the community.

A report discussed by regional health chiefs yesterday warns the latest financial position is causing “major concern” and shows significant work is required to rein in spending.

It says costs and levels of NHS activity in the county are unaffordable but changes required to address the problems will not be completed within 2012-13.

This increases the risk that the four new GP-led clinical commissioning groups in the county, which formally take over decision-making in April, will immediately plunge into the red.

Chris Long, chief executive of NHS North Yorkshire and York, said the £19m deficit had been projected as a “best case scenario” when it was announced in June.

But he added: “We do not expect the year-end deficit to exceed £19m and we are now working on a plan which will help us to achieve this.”

The measures will be discussed at a board meeting this month.

Health services in North Yorkshire have been overspent by more than £100m since 2007, including an estimated £28m last year. Twelve months ago, an independent review concluded £230m in costs need to go by 2015.

Officials refused to say how much the advice from KPMG was costing. A spokesman said the firm had been appointed to provide “external challenge to our financial plans and assumptions and to provide advice to senior NHS leaders in North Yorkshire on how to develop a long-term sustainable health and social care economy and any actions or reconfigurations of services that may require”.

Comment: Page 12.