NHS Trust that runs Hemel Hospital made savings of £24.2m but still overspent by £5.54m

The West Hertfordshire Teaching Hospitals Trust – which operates Watford General, St Albans City and Hemel Hempstead hospitals – has an annual expenditure budget of approximately £580m.

But a report presented to the Trust board on Thursday (May 1) reveals that over the 12 month period the Trust overspent by £5.54m – which is £4m more than had been initially forecast forecast.

Pressures highlighted in the report include a £9.1m overspend on staff pay – including a £4.7m in medical and £1.5m in nursing staffing.

And there was a £13.5m ‘non-pay’ over-spend that the report puts down primarily to clinical supplies and drugs (£6.4m), “reflecting higher than planned activity levels” and to savings shortfalls (£5.4m).

According to the report the Trust delivered savings of £24.2m in 2024/5. But that was £2.4m lower than the £26.6m savings target.

The report also references £22.9m of of income received from the NHS that had been higher than expected.

At the end of March it is reported that the Trust had a cash balance of £14.8m.

Commenting o the financial position following the meeting of the Trust board, a spokesperson for the West Hertfordshire Teaching Hospitals NHS Trust said: “The Trust delivered a deficit of £5.5m for the financial year 24-25 which was in line with agreed forecast.

“This represented an improved financial position from 23-24 where the Trust had a reported deficit of £13.8m.

“The improvement was supported by the delivery of £24.2m worth of savings and the Trust remains committed to improving its underlying deficit position over the short to medium term.”