Foundation trusts have invested £1.2 billion to improve care following the Francis and Keogh reviews.
A survey of Foundation Trust Network (FTN) members showed that around £450 million had been invested in 2013/14 and £712 million will be invested in 2014/15.
The majority of investment (90%) was spent in extra staff and recruitment costs, particularly on nursing staff.
Foundation trusts have invested £1.2 billion to improve care following the Francis and Keogh reviews.
A survey of Foundation Trust Network (FTN) members showed that around £450 million had been invested in 2013/14 and £712 million will be invested in 2014/15.
The majority of investment (90%) was spent in extra staff and recruitment costs, particularly on nursing staff.
And non-acute trusts have invested £110 million on care improvements following the Francis report, despite having no service development uplift from NHS England and Monitor for 2014/15.
Non-acute trusts also spent £48 million in 2013/14, however 80% were "not confident" that the costs would be covered by commissioners or the tariff.
The service development uplift announced in December 2013 provided an extra £150 million for acute trusts in 2014/15. But the FTN survey shows that this uplift will only cover 25% of the £600 million that acute trusts will spend.
Chris Hopson, chief executive of the Foundation Trust Network, said: Our members tell us that they are being asked to absorb rising demand; realise annual efficiencies at a level no other Western health economy has ever consistently achieved; potentially take a further £2 billion out of NHS acute care for the Better Care Fund in 2015/16; and, now, pay for a range of mandated new service improvements themselves on top of all this. This will require difficult choices. For some, it will mean going into deficit for the first time. “
“We need a different approach to funding new service improvements."
Rob Webster, chief executive of the NHS Confederation said: “The financial regime in the NHS needs to reflect the balance of costs and risks in the system. This is particularly important in an environment of financial pressure and efficiency.
"The FTN analysis suggests that the arrangements are not yet right – for example in not fully recognising the investment impact for community and mental health services. We need a financial regime that that truly reflects costs and shares risk appropriately. Only then will commissioners and providers be able to work together locally to determine the resources needed to improve care, and have the tools to do so.”
