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Foundation trust announces £37m deficit

Foundation trust announces £37m deficit

10 June 2013

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A foundation trust has been branded “financially unsustainable”, despite being clinically sound. 
An independent report released by health sector regulator Monitor discovered a deficit of £37 million was built up by the end of 2012-13, meaning Peterborough and Stamford NHS Foundation trust needed one-off support from the Department of Health (DH) of £44.1 million. 

A foundation trust has been branded “financially unsustainable”, despite being clinically sound. 
An independent report released by health sector regulator Monitor discovered a deficit of £37 million was built up by the end of 2012-13, meaning Peterborough and Stamford NHS Foundation trust needed one-off support from the Department of Health (DH) of £44.1 million. 
Despite the trust clinically operating “within expected performance levels”, forecasts show a continuing deficit of £38 million or more each year, with a possible additional shortfall of at least £40 million a year. 
Without further DH support the trust would not be able to pay wages or buy supplies. 
The Contingency Planning Team (CPT) sent in by Monitor found that the deficit was caused in part by operational issues, such as £5 million of unpaid medical activity. 
Stephen Hay, managing director provider regulation said: “This report clearly shows that Peterborough and Stamford Hospitals NHS Foundation Trust is not financially sustainable. 
“We now expect the CPT to advise us what practical options are available to close the financial gap and ensure continuity of service to patients.” 
The CPT will be “working closely” with patients’ representatives, commissioners and clinicians in the local area to identify options to make the Trust financially sustainable.

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