18.06.15
Monitor takes action at Lancashire trust due to massive deficit forecast
Lancashire Teaching Hospitals NHS FT is facing regulatory action due to its forecast of a massive deficit.
Following an investigation in March, Monitor has found the trust in breach of its licence to provide care and has stepped in to address problem with its financial position and the way it is being run.
The trust has forecast a deficit of £46.8m for 2015-16, a massive increase on the reported deficit of £2.8m in 2014-15.
It is the biggest deterioration in finances in the NHS foundation trust sector this year.
Monitor’s investigation found the trust lacked both the robust plans and the financial management needed to address its problems.
Lancashire Teaching Hospitals has agreed to develop and deliver a long term plan to ensure its finances return to a stable position and Monitor will appoint a financial improvement director to provide support to the trust and hold it to account for making progress.
Paul Chandler, regional director at Monitor, said: “The trust urgently needs to improve its financial position in order to continue to provide the quality of care that people across Lancashire expect in the long term.
“This year, the trust predicted that its finances will be significantly worse than last year. There are a number of reasons for this, notably problems with the trust’s financial plans and management. The trust is now on notice to reduce its forecast deficit quickly, and whilst it has our full support as it delivers its recovery plan, we will strengthen our action if necessary to ensure it manages its finances better in future.”
Monitor has also imposed an additional licence condition that gives the regulator the right to add, remove or replace board directors.
Karen Partington, chief executive of Lancashire Teaching Hospitals NHS FT, said: “It has been widely reported by the media that the NHS is predicting a significant deficit for this financial year, and hospitals are finding it increasingly challenging to balance the books whilst demand grows, costs rise, and funding reduces.
“Monitor has acknowledged that there are a number of reasons for our financial position, of which our financial planning and management are a part, and has given us its full support to deliver our recovery plan.
“We are absolutely committed to complying with the enforcement actions that Monitor has mandated, and will work with the Monitor team and with local health and social care organisations to produce financial recovery and sustainability plans.
“Our staff have demonstrated time and time again that they can rise to whatever challenges we face, and I’m confident that we’ll be able to take the necessary action to demonstrate that we can manage our finances now and for the future.”
(Picture by: Peter Byrne/PA)
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