Teesside Hospice chief says sector needs 'influx of cash'

Earlier this month, bosses at Teesside Hospice and Butterwick Hospice warned the sector could soon no longer be financially viable as charities face a struggle to balance their books.

Teesside Hospice chief executive Mike Thornicroft told how the charity had been “rescued” by unexpected legacies in wills in recent years, having consistently planned to spend more than the income generated. 

This week, Mr Thornicroft, who took on the role of chief executive in March, sat down with The Northern Echo to speak about the current position of the hospice, the need for an influx of cash, and generating more fundraising amid a cost of living crisis. 

“Our hospices depend on legacies to support us,” Mr Thornicroft told reporter Alex O’Leary at the Linthorpe inpatient unit on Monday (October 21).

Teesside Hospice chief executive Mike Thornicroft (Image: SARAH CALDECOTT)

“The challenging nature of legacies is you don't know when they are arriving. You don't know how much they are going to be for and not many people tell you that they're going to leave a legacy, so you can't have a plan for it, so it's completely down to luck.”

Last year, Teesside Hospice received roughly £850,000 in legacies, above the average of £450,000 in the last decade. 

However, the hospice doesn’t budget for legacies - and is looking for a more sustainable form of income from regular sources.

He said: “That would give us a balanced budget, so our income and expenditure are the same.”

In future, the hospice hopes to use legacies to invest in more opportunities, such as purchasing businesses or properties that can be let out. 

He added: “We've got strong reserves. We could support losses for the next three or four years around the same figure that we are now, but then we'll be getting to crisis point. 

“And before we get to that point, I'd be talking to the board about stopping doing something or some things that cost us money. 

“Obviously, our core services, the inpatient unit, we have to protect that. But equally, if the NHS isn't funding it effectively, we might have to make a decision about that as well.”

Areas to generate more income have been identified, and Mr Thornicroft said he is confident that he can eventually reduce the deficit to a zero budget in the next five years. 

“Then we can start using those reserves for other things. We’re looking at a whole picture. But on the flip side, every year costs are going up.” 

‘It’s an ongoing battle’

With Chancellor of the Exchequer Rachel Reeves set to deliver the Autumn Budget in a matter of days, Mr Thornicroft hopes it will feature “something specific to recognise the contribution that hospices make”.

He said: “I think the NHS and health and social care services need an influx of cash. The funds over the last 14 years with a Conservative government were going down each year. 

“Health services help people recover from illness. It’s social care services that help them live in the community. So if we want the health services to be successful, social care services need to be resourced effectively as well.” 

Teesside Hospice inpatient unit in Linthorpe, Middlesbrough (Image: SARAH CALDECOTT)

Mr Thornicroft said the influx of cash would mean service users “can get the support they need, when they need it” - and otherwise it would be “failing the people of the country”. 

But he understands that, while Teesside Hospice is in a “strong” position, other hospices are not. 

He continued: “There are lots of hospices around the country that, in spite of getting the funding from the NHS under their activities, including retail and fundraising, have found funding dwindling and their costs going up. 

“The NHS isn't able to balance the budget with increased funding. So hospices looking at mergers with other hospices to try and save themselves, or potentially closing the doors.”

Thankfully, none of the North East hospices are in this “precarious position” and have reserves - despite forecasting overspend in budgets. 

“That is only sustainable for a period of time”, he added. “There comes a point where the reserves run low and then you have to start making a decision about, is this a viable concern?” 

Teesside Hospice inpatient unit in Linthorpe, Middlesbrough (Image: SARAH CALDECOTT)

In the last couple of years, Teesside Hospice’s inpatient unit has increased in costs by 9% - and within the same two-year period, the net increase from the NHS was 0.4%, reflecting the increase the health service received from the government. 

Mr Thornicroft said while the hospice sector does need more money from the NHS, actually, the service itself also needs more money from the Government. 

He said: ““At the moment we get £1.6 million a year from the NHS. £900,000 of that is for the inpatient unit. The NHS acknowledged that if they were to pay us the correct fees for the cost of a bed per day, they would need to give us another million pounds. 

“So they pay about half of what we actually need to run the inpatient unit.” 
 

Cost of living concerns

A major issue facing the hospice in terms of fundraising is the cost of living, with a lack of disposable income meaning the focus of many is simply “putting food on the table”.

“There's only a certain amount of money people can spare and it's being demanded by lots of different organisations”, he said. 

Retail does continue to be a major part of the hospice, with a growing number of shops around the region. However, this sector has its own difficulties - and the charity is still trying to build back staffing to pre-pandemic levels. 

He added: “The balance of struggling to find volunteers, turnover of staff, and a change in senior management means our shops aren't doing as well as expected.

“Which is the reason why we are heading towards £600,000 overspend - but we actually budgeted for around £330,000 - £350,000. 

“So, fundraising is not doing as well, and neither is the retail side of things.” 

Mr Thornicroft wants to look at how each shop individually can be improved profit wise - but said all stores are making money.

He said: “We need to see that profit margin increasing so that the investment we make is actually bringing back money into the hospice that can pay for patient care.”

What Teesside stands to lose

Teesside Hospice is currently home to ten beds, available 24/7, 365 days a year, supporting people at the most important part of their life, as they approach death. 

Mr Thornicroft said the service there ensures people have the best quality of life possible: “If you walk onto the inpatient unit ward, you'll find it is a peaceful, happy, and calm place. 

“You wouldn't think that there were people in there who were coming to the end of their life. 

“All those services will have to be delivered in hospitals that have already got massive waiting lists. Every year you hear of hospitals, when winter pressures arise, having to close the doors.

Recommended reading:

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• MPs say 'lifeline' hospices 'deserve greater support'
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“Having ten beds available adds a massive resource to the local community."

He hopes that in the coming years, the hospice can reach a position of parity, and start providing more services off-site in the community. 

“Hopefully we can work with our colleagues in the NHS to help them identify that actually we will be saving them some money and hopefully they can direct some cash to us.”