Greater Manchester's NHS system is £86.5m in the red - the reasons why revealed

Greater Manchester's health and care services, including the region's NHS, is in an £86.5m hole, with the 'legacy of the pandemic', 'industrial action', 'increasing demand' and 'rising costs linked to inflation' named among the reasons for the huge debt.

The region’s integrated care system (ICS) is responsible for paying for, planning and delivering Greater Manchester’s health and care needs, including most NHS services in the area. But the organisation is £86.5m in deficit in its third month of annual financial reporting – £66.5m below an already £20m anticipated shortfall, revealed at the system’s latest finance committee yesterday.

The shortfall has prompted ‘additional scrutiny’ from the national health service body, NHS England, which could become full-scale intervention if Greater Manchester does not demonstrate ‘fundamental improvements’. The system has now revealed an extensive list of reasons for the deficit.

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The first three months of this financial year have spelled freefall for the Greater Manchester Integrated Care System – the body responsible for buying, planning and completing most of the region’s health and care services, including those provided by the NHS. Sharply declining graph lines show that the system expected to have a deficit of £20m by July 2023, a year on from the establishment of the mammoth organisation.

That deficit actually now stands at a colossal £86.5m, with a risk that the deficit could grow to £164.1m by the end of the year, according to a report presented to the ICS’ finance committee on Monday, August 7.

Integrated care systems (ICSs) are partnerships that bring together NHS organisations, local