Birmingham Hospice has announced it has to make significant redundancies as it faces an estimated £2.4m deficit budget this year.
The charity said this decision is down to a lack of government funding for the hospice sector, rather than its local fundraising efforts.
It is set to reduce its number of inpatient beds and cut the equivalent of 45 full-time roles, around 14% of its overall workforce.
As the gap between costs and income continues to rise, senior leaders from Birmingham Hospice have called crisis talks with NHS commissioners to negotiate additional funding.
Birmingham Hospice said it needs to raise £6.5m through fundraising activity, including income from shops and voluntary donations, to cover its running costs.
‘Totally unpalatable’ redundancies
Birmingham Hospice chief executive Simon Fuller said: “The prospect of having to make highly skilled specialist end of life clinicians and support staff redundant is totally unpalatable.
“We are doing everything we can to support all our hospice colleagues through this difficult time.”
Fuller said the charity has been working with umbrella body Hospice UK and other hospices nationally to address the financial challenges across the sector.
“The problem has been discussed in parliament; but the current administration has passed the problem to local commissioners who have not been able to provide additional funding,” he said.
“Reducing hospice services is bad for the people of Birmingham, the health care system, and those who will be affected by the proposed redundancies.”
Fuller said there is a growing need for palliative and end of life care and the NHS is unable to meet the huge demands on its beds.
“All we can hope is that, after the election, we will see a sensible discussion on the future of hospice care,” he said.
The charity said that as it is not underwritten by the government or the NHS, it cannot continue to run a deficit and run out of money, as it would no longer exist.
By making redundancies now, the hospice hopes to ensure it can return to a sustainable budget as soon as possible.
Savings so far
Birmingham Hospice said numerous meetings have taken place with the local integrated care board, which has itself had to make savings to meet a funding shortfall.
Since Birmingham Hospice was formed in 2021 from the merger of Birmingham St Mary’s Hospice in Selly Park and John Taylor Hospice in Erdington, it has already made cost savings by merging management and support staff roles.
The charity made further efficiency savings earlier this year, including making some staff redundant.
It has also looked to invest in fundraising and retail operations, but it said the return generated will not be at the rate of its rising costs.
Birmingham Hospice said in the absence of any additional support, it is not able to delay its decision to make redundancies any longer.
The hospice has sought to draw attention to its financial situation including a petition and meetings with local MPs and councillors as well as national campaigning through Hospice UK.
‘Entirely down to a lack of government funding’
Lucy Watkins, income generation director at Birmingham Hospice, said this year saw the launch of its crisis appeal which has once again seen people give what they can.
She said: “Our current situation is no reflection on the generous support we receive, and is entirely down to a lack of government funding for the hospice sector.
“While this shortfall cannot be covered by fundraising alone, we are hugely grateful for everyone’s support, whether that is through donating to us, taking part in one of our events, or visiting one of our shops.”
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