NHS deficit predicted to hit £94m

12 April 2012

The financial forecast for the NHS is getting worse, according to a report.

The Department of Health has predicted a £94 million net deficit by the end of the 2006/07 financial year.

That compares to an £18 million surplus predicted in a similar report just three months ago.

The total gross deficit predicted for the year is £1.18 billion, up from £883 million three months ago.

The number of organisations forecasting deficits has also gone up - from 120 to 175 - although fewer than last year are reporting large deficits, the report said.

The report also showed that the forecast gross surplus is now £736m, up from the £551m predicted three months ago.

There is also a £350m contingency which the Department will offset against the gross deficit.

Strategic Health Authorities have also reported they can generate an additional £100m contingency, the report said.

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