GPs face financial ‘black hole’ unless they make big savings

Health organisations across the capital have been told to make urgent and immediate cutbacks which could affect patient care.

London's Primary Care Trusts have been given only weeks to draw up plans to save the health service from falling into a financial black hole.

In a confidential document, they have been told they have until October 15 to come up with proposals to cut spending. Strategic health authorities and more than 150 primary care trusts across the country are due to be "phased out". Groups of GPs will take over the task.

PCTs must present their plans to GPs, advising them to sign up to the cuts or face being financially crippled. The document, sent out by NHS London, says "London no longer has a legitimate medium-term financial strategy" and without radical action "it's unlikely financial health and clinical quality will be maintained or improved in 20011/12 and beyond".

It urges trusts to ram home to GPs the cost of "doing nothing" and calls on them to draw up a list of cuts.

It emerged this year that six health organisations in the capital were desperately short of cash with debts of up to £37.7 million.

Now NHS Tower Hamlets predicts it will plunge £37 million into the red by 2013 unless it wins GP backing for cuts. Trusts in the north-east of London could hit a £114 million deficit.

Dr Sam Everington, a GP in Tower Hamlets, said: "The message I'm getting is all about major cuts that have to be made across the board. It's quite stunning considering the emphasis previously has been on maintaining spending on the NHS."

An NHS London spokesman said: "We need to spend more of the money we have on front-line NHS services and not on managers.

"The Department of Health has asked PCTs and the health authority in London to cut management costs by more than half.

"We are asking PCTs to identify how these savings can be made."