01.05.15
Monitor to investigate finances of three month old foundation trust
Monitor is to investigate the finances of St George’s University Hospitals, just months after granting it foundation trust status.
The regulator has launched the investigation after a “sudden deterioration” in the trust’s finances. When Monitor made the organisation a foundation trust in February, it was forecasting to break even in 2014-15 and make a small surplus in 2015-16. But in fact the trust has recorded a massive £16.8m deficit for the year with a prediction of an even greater one for next.
Monitor said it will examine how and why this situation has happened, and identify possible solutions.
The regulator also wants to understand why St George’s has failed to sustain its progress in treating patients more promptly, as requested at the time of its foundation trust authorisation.
Responding to the investigation being announced, St George’s University Hospitals blamed the unprecedented surge in demand experienced during the winter A&E crisis and the resulting cancelled operations and increased waiting times for patients.
The full statement from the trust reads: “Towards the end of 2014-15 there was a significant divergence from plan ending the year with a £16m deficit instead of the small planned surplus.
“As a major trauma centre, the trust has been particularly affected by the operational pressures that have been seen nationally. During the winter we were faced with unprecedented demand from very ill patients and fixed capacity in terms of beds and operating theatres. This resulted in a cancellation of planned operations and longer waiting times for some patients. Financially it led to reduced income from planned activity combined with increased costs of staff and supplies.
“The St George’s Board is committed to maintaining quality and safety and takes its responsibility seriously for addressing these issues.
“We will work with Monitor to understand fully how and why this situation has happened, and to identify possible solutions.”
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