Briefing / Treasury and cash management in the NHS

In today’s NHS, cash has been called the ‘canary in the mine’ as it is an indicator of financial problems. There is some concern that the current focus on control totals as the key financial metric means that cash and working capital balances are not being kept under review.

This paper considers how cash flows around the NHS and what cash related targets each type of NHS body in England has to meet.  It considers what treasury management is and best practice in reporting on cash and treasury issues.  Finally, it considers working capital management and the actions NHS bodies can take to improve cash flow.

Whilst the first part of this briefing considers the English NHS, the principles set out in the rest of the briefing are applicable in the devolved nations.

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