Red alert for the English patient

The National Health Service (NHS) faced a deficit of [pounds sterling]500 million as of 30 September 2004, even as finance directors are coping with new employment contracts, and adjustments to pension funds. The Agenda for Change, a new pay system covering most NHS staff is expected to cost the NHS [pounds sterling] 490 million in 2004/5 alone. A rise of 10% in emergency admissions this year has caused problems for Primary Care Trusts (PCTs) with some of them cutting routine surgeries, operating theatres and hospital beds to reduce costs. The new measures have drastically cut down waiting lists, which is a welcome sign as the PCTs scramble to increase activities under the payment by results (PBR) scheme.