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Penalties mean hospitals might need to make 7% of savings each year, warns regulator

BMJ 2011; 342 doi: https://doi.org/10.1136/bmj.d2856 (Published 05 May 2011) Cite this as: BMJ 2011;342:d2856
  1. Helen Mooney
  1. 1London

Hospitals could be forced to make much tougher financial savings than originally thought, the foundation trust regulator Monitor has warned.

In a letter to foundation trust applicants and existing foundation trusts the regulator cautioned that hospitals might have to make savings of 6% to 7% each year for the next five years. The Department of Health had already said it wants hospitals to deliver 4% savings over the same period.

In the letter Monitor’s chief operating officer, Stephen Hay, said that higher than expected inflation, plus tough financial penalties for things like emergency re-admissions mean …

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