BARNSLEY Hospital finances bosses warned they are facing growing financial pressure this year after earning less money than expected for the care it delivered and absorbing costs linked to recent doctors’ strikes.
New figures show the trust recorded a small deficit of £64,000 in its October report, which is broadly on plan, but hospital leaders say the underlying picture is ‘tightening’.
The hospital brought in less income than planned because it treated fewer patients than expected, while the impact of industrial action by resident doctors in the summer alone is estimated at around £400,000.
Staffing costs remain a major issue, although the hospital has made progress.
Agency spending, one of the most expensive areas, has dropped by 37 per cent over the last year due to tighter controls, and both bank and agency usage are lower than last year.
However, non-contracted staffing costs rose over the summer and are only expected to fall back as services stabilise.
To keep its finances on track, the trust outlined a plan to deliver £11.7m of efficiency savings this year.
So far, it has delivered £2.73m against a target of £4.05m by this point.
Leaders say they expect to claw back the gap, but admit the heaviest pressure remains on schemes aimed at reducing agency and bank spend.
Chair of the hospital’s finance committee, Alison Knowles, said: “Significant progress has been made and this is a much-improved position.
“Year to date, the trust has delivered £2.73m against a plan of £4.05m.
“The trust is aiming to recover this under-delivery.
“The focus of work is now moving to the delivery of individual schemes, but the highest risk schemes remain those related to reducing non-contracted pay.”
There is also uncertainty over support from the South Yorkshire Integrated Care Board, the report added.
A key decision on whether Barnsley will continue to receive deficit support funding is expected shortly - and losing it could leave a significant hole in the trust’s year-end position.
A Barnsley Hospital spokesperson said everything was being done to keep hospital finances on track, although some tough decisions would have to be made.
A spokesperson said: “We have plans in place which have included testing some new approaches that have continued following evaluation.
“This was reflected in our operational plans for 2025/26.
“Unfortunately a number of factors, including a rise in attendances, has led to a challenging position.
“Further improvement work is in progress and we are taking action to address our financial position, while not compromising quality of care.
“We are appreciative of our staff who have taken a whole hospital approach to the challenges and stepped up for the benefit of our patients.
“We knew that this would be a challenging year and we will need to consider what we prioritise to help balance the demands of delivering improvements in quality, as well as finance and performance.”