One of the NHS’s leading integrated care providers has sought financial help from its strategic health authority cluster after reporting a “precarious” cashflow position.
Wye Valley Trust, the first body to provide acute, community and adult social care services, reported this month that its ability to pay its bills “on a timely basis is being severely impeded”.
It was formed in April from Hereford Hospitals Trust, the community services provider arm of NHS Herefordshire and Herefordshire Council’s social care services.
Wye Valley is also set to take over learning disability services from 2gether Foundation Trust, and its integrated approach has been considered a model for other NHS bodies looking to become financially viable.
But December board papers described Wye Valley’s cashflow as “precarious”. The trust had a £2.3m deficit, £1.9m worse than planned, with a forecast year-end black hole of £3.3m.
Chief executive Martin Woodford said the trust’s director of resources had met the Midlands and East SHA cluster to discuss “credible turnaround support”.
A Wye Valley spokeswoman said the situation was “partly income related, partly due to cost improvement plan slippage and partly expenditure pressures”.
The trust had warned in July that it could run out of cash if its revenue performance did not improve. It had reported that the problem was compounded by its capital programme, which resulted in high spending in the first three months of 2011-12.
Earlier this year Wye Valley announced it had slashed delayed transfers of care through more joined-up working, reducing associated costs from over £400,000 a month to less than £19,000.