The NHS Trust that runs hospitals in west Hertfordshire made savings of £24.2 million in 2024/25 – but still ended the year with an overspend of £5.54 million.
West Hertfordshire Teaching Hospitals NHS Trust – which operates Watford General, St Albans City, and Hemel Hempstead hospitals – has an annual expenditure budget of around £580 million.
However, a report presented to the Trust board on Thursday (May 1) revealed that the Trust overspent by £5.54 million over the 12-month period – £4 million more than initially forecast.
Financial pressures outlined in the report include a £9.1 million overspend on staffing costs, made up of £4.7 million in medical staffing and £1.5 million in nursing.
In addition, there was a £13.5 million ‘non-pay’ overspend, attributed mainly to clinical supplies and drugs (£6.4 million), “reflecting higher than planned activity levels,” and to a shortfall in savings (£5.4 million).
According to the report, the Trust delivered £24.2 million in savings during 2024/25 – £2.4 million less than the £26.6 million target.
The report also notes an additional £22.9 million in income from the NHS, which was higher than expected.
As of the end of March, the Trust’s cash balance was reported to be £14.8 million.
Commenting on the financial position following the meeting of the Trust board, a spokesperson for 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.”
Deborah is a Local Democracy Reporter covering news across Hertfordshire, with a strong focus on councils, local government and public policy. Her reporting includes county council decisions, council tax, spending pressures, legal and regulatory issues, healthcare stories including junior doctors, and community projects affecting local residents.
