University Hospital Southampton facing multi-million pound deficit report shows

One of the South's biggest hospitals is currently facing a multi-million pound deficit, a report has shown.

University Hospital Southampton (UHS) runs Southampton General Hospital, one of England's leading facilities.

In its latest board meeting, the trust reported a monthly 'underlying deficit' of £6.1million, a deterioration on 2023, where the deficit averaged between £4-4.5million per month.

This increase has been blamed on 'real-terms funding cuts' in the overall allocation of money to UHS.

The report says the NHS trust is under-funded on its contract with Hampshire and Isle of Wight Integrated Care Board by £33million.

It blames a growth in the number of patients for this, as well as inflation putting pressure on its existing funding.

A shortfall in 'additional funding' for 'nationally negotiated pay awards' has also been noted as a 'driver' for the deficit.

Increase in energy bills and high-cost drugs spend were also highlighted, with drug spending said to be 'significantly' above what is currently funded.

In the report, UHS says it is 'continuing to raise' its financial pressures with commissioners, and it hopes to find a 'resolution' in the future.

It ended 2023 with cash reserves of £79million, which has reduced to £57million by April 2024.

The trust says it is also applying additional vigilance to assess ongoing viability of the capital programme, and will also ensure the NHS England draw down process 'is ready if and when required'.

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