Hospitals could have to make savings of up to 50 percent higher than initially outlined by the government in order to meet guidelines under the NHS reform programme.
Monitor, the independent foundation trust regulator, wrote to health officials around the country to warn them that they might face a “substantial challenge” in trying to meet the coalition’s drive for efficiency.
The regulator suggested hospitals could have to make savings of up to 7 per cent a year to be granted foundation trust status compared to the four percent previously outlined by the Department of Health (DoH).
The government is trying to convert all hospital trusts into foundation trusts by 2014, meaning they would be free from central control. It wants to cut £20bn across the NHS by 2015 and reduce administrative costs in non-front line organisations by 33 percent over the same time period.