News / FTs register strong Q1 financial performance

Foundation trusts reported an aggregate net surplus of £88m for the first quarter, after paying £78m in public dividend capital (PDC) dividend. Before PDC dividends and exceptional items, the trusts had an aggregate surplus of £166m compared with the planned surplus of £136m. Only five of the 67 foundation trust did not deliver a surplus in the first quarter of 2007/08.

In its report, Monitor said foundation trusts had the financial stability, flexibility and leadership to respond to the outcomes of health minister Lord Darzi’s NHS Next Stage review. Monitor executive chairman Bill Moyes insisted foundation trusts could reshape local health services in partnership with other parts of the health economy. To give them the confidence to invest he said they needed clear direction from commissioners about purchasing intentions.

Despite their financial muscle, Mr Moyes was concerned about governance failings. Some 25 trusts were rated amber for governance issues, the biggest problem being the target for year-on-year reduction in MRSA cases. He said 22 foundation trusts had failed to meet this requirement during the first quarter. He added some trusts were too optimistic about their ability to achieve governance targets. Monitor has indicated that it would consider the need for independent reviews of board self-certification if this pattern continued.

‘NHS foundation trusts should look carefully at the processes and systems by which they consider and report on healthcare targets and national core standards in advance of any further action Monitor may require,’ said Mr Moyes.

Sue Slipman, director of the Foundation Trust Network, welcomed the figures and backed the assertion that foundations could play a central role in the Darzi reforms. ‘To do this, the government needs to be clear that FTs will be able to work across any part of the patient pathway,’ she said.

However, she warned Monitor against imposing an independent review of board self-certification. ‘Foundation trusts would be concerned if this marked a move away from its role as a risk-based regulator towards direct performance management,’ she added. ‘The focus should be on corporate boards retaining responsibility for addressing legitimate concerns.’