23.12.15
Investigation launched into trust in the red for second year in a row
Monitor has opened an investigation into the finances of County Durham and Darlington NHS FT, with the trust set to be £14.7m in the red by the end of 2015-16.
But the trust, which provides acute and community services to about 600,000 people, said it is already on track to achieve £20m savings this year and expects to return to a surplus in 2016-17 – although this is now expected from all organisations.
At the start of 2015-16, it was forecasting a £17.6m deficit at the year-end, according to its chief executive, Sue Jacques.
She said a key challenge was the cost of medical and nursing bank and agency staff, but recognised that this has been a pressure for most trusts nationally – especially with obligations to meet recommended staffing levels “at a time when unplanned activity continues to increase”.
“Steps we have taken include new in-house bank arrangements and recruitment abroad, and these are already having an impact,” Jacques said. “The trust’s nurse agency costs are down from £1.3m in June to £635,000 in November. There is more to do, particularly in addressing the cost of medical agency staff.”
According to Jacques, 2014-15 was the first time the provider ended the year in deficit, after having generated surpluses to reinvest in frontline care ever since it became a foundation trust in 2007.
Launching the new investigation, Monitor’s regional director, Paul Chandler, said: “We know the trust, like much of the NHS, is facing a serious financial challenge but we are going to help find out what more what can be done to get a grip of the situation.
“Thousands of people across the region rely on the services this trust provides, so we will work quickly to determine what support the trust needs to help ensure the necessary improvements are made.”
The regulator has not decided whether or not to take specific action, but it will announce the outcome of its investigation “in due course”.
The trust’s associate director of procurement, Helen Lisle, has previously written for NHE discussing Lord Carter’s interim £5bn efficiency savings plan and explaining how the provider was empowering procurement professionals to cut back on costs.