Tuesday 3 May 2016

NHS encouraged into 'creative accountancy' to hide looming debts

NHS encouraged into 'creative accountancy' to hide looming debts Hospitals are under pressure to "paint a false picture" of their accounts in order to hide the biggest ever NHS deficit, experts say, as official guidance urges trusts not to be too “prudent” in their approach.

Forecasts show the health service is currently heading for the worst deficit in its history, with fears that the financial black hole could extend even beyond limits allowed by the Treasury.

Guidance issued by the Department of Health (DoH), seen by The Daily Telegraph, urges NHS trusts to adopt measures which will help them to improve the books in the short-term.
They are asking financial directors to pull the wool over the Treasury’s eyes and the public’s eyes – to paint a false picture of the situation the NHS is facing,

Financial experts said the advice was a “desperate attempt at creative accounting”. The Daily Telegraph

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