News Release

7th January 2002

"EXTRA NHS MONEY" PROVIDES NO HELP FOR LICHFIELD HOSPITALS

Hopes that the £36 million of extra money destined for the South Staffordshire Health Authority from the Government might help to maintain existing in- and out-patient hospital facilities in Lichfield and Burntwood have been dashed. In replying to a letter from Michael Fabricant enquiring whether the Government's claimed extra funding will restore day surgery to Lichfield, Melvyn Ellis (the Chief Executive of South Staffordshire Health Authority), has starkly spelt out the financial position . Mr Ellis states: "As regards our plans for Lichfield and Burntwood these figures make no difference".

Indeed, Melvyn Ellis states in his letter that while the Department of Health in London has used 2.5% as an inflation figure, "The generally accepted view in the NHS is that NHS inflation is currently running at 5.6% so that immediately eats away at the real terms growth. From the additional money, just over £8,000,000 is earmarked for specific purposes which whilst benefiting the NHS locally cannot be used for any other purpose and therefore restricts our flexibility. Finally we have to deal with our rolling deficit which now stands at about £4.5 million".

Michael Fabricant says "Melvyn Ellis is right to highlight the financial pressure still being faced by the Health Authority. I had hoped before Christmas that the 'extra NHS money' being trumpeted by the Government might be real and might be available to ensure that hospital services in Lichfield and Burntwood would not be reduced. But it is unfortunately now clear that any rejoicing was premature. As ever, things are not as good as they at first seemed.

"The Government has a clear duty to fund local health authorities adequately. Their decision to abolish GP Fundholding in 1998 immediately threatened the long term viability of our hospitals. Prior to then, local doctors had a major financial input into hospital services in Lichfield and Burntwood.

"Nevertheless, despite funding pressure, we have seen major movement in the right direction from the Health Authority reversing many of their original plans. They are now not going to close the dialysis unit and there is some hope that there may be as many beds available in the proposed new Lichfield hospital as was originally the case in Lichfield and Burntwood. But this needs clarification as the plans are still not clear. Importantly, we have won the case on the maternity unit. This was originally scheduled for closure, but has won a stay of execution at least for the time being. The two outstanding issues are: the provision of in-patient and respite beds in Burntwood; and the retention of day surgery in Lichfield."

With regard to day surgery, Melvyn Ellis states in his letter: "The planned move of day surgery from Lichfield to Tamworth was always based on value for money and using existing facilities rather than on cost saving grounds". But Michael Fabricant responds: "I am not clear what Melvyn Ellis means by this. He was previously using the 'value for money' argument against the dialysis and units saying that people could travel elsewhere. Ultimately, one could use the 'value for money' argument against any smaller hospital and this would clearly be wrong. I intend to continue to fight for both day surgery to be retained in Lichfield and some in-patient facility to be in Burntwood. At a time when the area's population in increasing, we should be looking at more hospital services, not fewer".

Michael Fabricant will be meeting with David Murray (Chairman) and Melvyn Ellis on the 10th January when he will be pressing these issues. In the meantime, he will also chase Lord Hunt - Minister at the Department of Health - who had promised to write to Mr Fabricant with the Government's conclusions following Lord Hunt's meeting with a delegation from Lichfield and Burntwood on the 6th November last year. No such letter has yet been received.