28.01.15
Dudley Group NHS FT ordered to improve finances
Health regulator Monitor has stepped in to force The Dudley Group NHS Foundation Trust to improve its finances, which have continued to worsen despite shrinking waiting times for A&E patients.
The Dudley Group is forecasting a deficit of £8m in 2014-15, which Monitor says needs to be urgently addressed. It has secured legally binding commitments from the trust to develop a robust strategic plan to address its financial decline and to implement an effective financial recovery plan for breaking even.
This action comes only weeks after The Dudley Group announced plans to cut 400 jobs over the next two years, as part of its ‘annual efficiency savings’.
This latest announcement could signal what type of action Monitor may have in store for other FTs in the future, especially after the sector as a whole forecast a year-end net deficit of £271m, which comprises of a gross deficit of £53m at 60 trusts (£115m worse than planned), offset by a £260m surplus at 87 trusts (£136m worse than planned).
Katherine Cawley, regional director at Monitor, said: “The Dudley Group has reduced waiting times for patients in A&E, but it now needs to show a similar focus to address its financial issues.
“Our action is designed to support the trust’s efforts to balance its books. We want Black Country residents using its services to continue enjoying quality care for the foreseeable future.”
The Dudley Group has committed to work with other local healthcare organisations in drawing up the plans which the regulator will monitor.
Cawley added: “We will continue to monitor the trust’s progress in achieving this and won’t hesitate to take further action if necessary.”
UPDATE:
Paula Clark, chief executive of the Dudley Group NHS Foundation Trust, told us: “Monitor has now secured legally binding commitments from the trust that we will develop and implement, a robust strategic plan to address our financial decline; and also an effective financial recovery plan for breaking even.
“We have already begun strict financial controls for vacancies and we are currently beginning workforce reduction plans which will reduce our workforce by 400 posts over the next two years. We continue with our turnaround plans which are making efficiencies across the system and are now forecasting £7.5m deficit close to our plan for the year.
“We are pleased that Monitor have closed the element of their investigation about the four hour target to see treat, admit or discharge patients from their arrival in ED due to our improved performance.”
(Image: c. Gordon Griffiths)
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