NHS finances have improved markedly, moving from deficit to surplus, according to the Audit Commission's Review of the NHS Financial Year 2006/07.
However, nearly a third of NHS bodies are still in poor financial health.
Auditors assessed NHS trusts and primary care trusts across England on how well they manage taxpayers' money. In general, they found that the steps taken by the Department of Health and by NHS bodies to return the NHS to financial balance were successful. However, regional variations remain. Rating the trusts on a scale from 1-4 on how well they use NHS resources, auditors found that:
- 27 per cent of trusts and PCTs (91) were in the top two categories, performing well or strongly, in their use of resources (compared with 12 per cent in 2005/06);
- 31 per cent of NHS trusts and PCTs (104) scored 1 out of 4, failing to meet minimum requirements (compared with 39 per cent last year); and
- 8 per cent of trusts and PCTs (27) not only scored 1 overall for use of resources, but also failed across all three key areas: financial management, financial standing and value for money.
A summary is also available.