Portsmouth's hospitals trust facing cash crisis20th December 2010
Portsmouth Hospitals NHS Trust is in dangerous financial straits as it revealed it is overspending by £700,000 a month.
The trust is on track to finish the financial year with a deficit of £8m. Managers at the trust said that despite making 500 redundancies they are not in the black.
They have had to approach regional health managers in order to request a loan so they can pay their debts.
"The challenge we are going into next year is the biggest we've ever seen," said Steve Gooch, deputy director of finance at Portsmouth Hospitals NHS Trust.
"The main reason we are in the deficit is because we've got to make £37m worth of savings this financial year and we have found £31m, but we've not been able to bridge the £6m gap."
"We're getting support from the strategic health authority and PCTs to try and work out where we can make more savings. We're aiming to close the gap as much as possible without affecting services," he added.
The trust has to pay off the debt it owes to the Private Finance Initiative for the cost of the £256m hospital rebuild. It has to pay back £44m annually over the course of 31 years.
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Tuesday 21st December 2010 @ 0:07
In the end previous bad housekeeping and slack accounting always come home to roost.
You should probably start sacking people at the top.
They will naturally want to resist this as it may affect their pensions, but the sooner those responsible go the better.
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Title: Portsmouth's hospitals trust facing cash crisis
Author: Jess Laurence
Article Id: 17092
Date Added: 20th Dec 2010