FT faces loss of more than £56m2nd March 2012
A hospital foundation trust is expecting to make a loss of more than £56m this year.
Peterborough and Stamford Hospitals Foundation Trust, which has an annual turnover of £200mt, is burdened with costs of £3m a month for Peterborough City Hospital under a Private Finance Initiative scheme.
It expected to get £22m in assistance towards that but will instead take £45.7m in temporary public dividend capital to provide funds for it to continue operating.
Now, the £22m has had to be added to its projected deficit for the year, taking it to £56.3m, though the trust does have an income of £220m a year.
However, the deficit is equivalent to 25% of its turnover, which proportionately is larger than the deficits at South London Healthcare or Imperial College Healthcare.
New interim chief executive Peter Reading told HSJ: “The deficit is absolutely enormous and is not cleared by this injection - it just clears our cash position until the end of March.”
Papers presented to the trust board reveal that at present it is managing its cash on a daily basis to ensure it meets its obligations to staff and suppliers.
The board is trying to reduce is £4m monthly overspend through cost improvement programmes and has said that 300 posts will be lost.
Dr Reading said there are plans to improve relations with local commissioners and to work with neighbouring hospitals on potential service collaboration.
The smaller Stamford and Rutland Hospital will still have a future within the trust providing local services, he said.
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Title: FT faces loss of more than £56m
Author: Mark Nicholls
Article Id: 21280
Date Added: 2nd Mar 2012