Restructuring Activity: Very high
As of Q1 2023, we have moved our assessment of financial stress in the NHS to its highest level. This is following a period of lower restructuring activity volumes between 2020 and first two quarters of 2022, largely coinciding with the pandemic.
As the pandemic dialled down so did the pending waitlist of patients for non-covid related procedures. This has added strain on the NHS, combined with the healthcare professional burnouts from Covid and more than 100,000 vacancies across all levels within the NHS creating a vicious circle.
In recent quarters we have all observed press coverage of industrial action from NHS staff demanding higher payments due to increased workload and double-digit inflation increasing the cost of living. However, NHS leaders acknowledge current budgetary limitations facing UK and devolved Governments and have stated publicly that it is facing its greatest ever financial challenge as a result. Cost pressures have even led the current CFO of NHS England to estimate a funding shortfall for 2023 of up to £7 billion.
This trend of financial stress is likely to be maintained for sometime despite recent funded pay settlements. NHS management teams remain focussed on driving operational cost reduction initiatives in and effort to balance budgets.
Restructuring activity in NHS
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Craig Masters is Head of Public Sector Cluster, which includes the NHS as one of four core segments. David Lock leads our approach to the NHS sector nationally. For a full list of our senior people with experience in this sector use the button below.Our senior team