20.06.11
‘Catastrophic’ financial crisis at hospital trust
Thousands of staff at a hospital trust may not be paid in August because of a “catastrophic” financial crisis, according to a leaked email.
Malcolm Lowe-Lauri, chief executive of University Hospitals of Leicester NHS Trust, said it has a cash “overshoot” of between £5m and £6m.
In the email to senior staff obtained by newspapers, dated June 10, he warns: “This can only be described as catastrophic.
“What do I mean? Firstly, there is a real issue about whether we will be able to pay our staff by August or September if the present run rate continues.”
It is not a foundation trust and so cannot borrow money from the private sector.
Lowe-Lauri confirmed the situation in a public statement at the weekend, saying: “We are facing the toughest financial challenge in our 10 year history.”
He blamed the financial crisis and “relentless demand” on the hospital’s emergency department over the winter, the need to hire extra staff on “expensive short-term rates”.
Lowe-Lauri added: “Now that the demand is finally dropping we need to quickly stop the spend on extra staff and extra wards, but until now we have not done this quickly enough and the costs have mounted.
“If we don't act now and allow the current situation to continue then theoretically the hospitals run out of cash in September. But we are committed to this not happening because we will act.”
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