FINANCE: Northern Lincolnshire and Goole Hospitals Foundation Trust has asked for one-off emergency loan from the Department of Health to help it deal with ‘unprecedented pressure’ on its finances.
The trust, which came out of special measures last July, has forecast an £18m year end deficit for 2014-15.
In agreement with Monitor, the trust will draw up a short term cost improvement plan to address some of its financial problems.
The value of the loan request to the DH has not been disclosed.
A spokeswoman for Northern Lincolnshire and Goole said the provider was dealing with “unprecedented pressure” in common with the rest of the foundation trust sector.
She added that its underlying deficit forecast was partly due to the financial position of the wider northern Lincolnshire system.
Monitor took the trust out of special measures in July, following an inspection by the Care Quality Commission that found that the quality of care had improved significantly. However, its finances have since deteriorated.
Trust chief executive Karen Jackson said: “We have the full support of our healthcare partners in our local system to access Department of Health funding since this is an issue that is accepted as belonging to the whole health community.
“Monitor is very clear that this is purely about finances, as they remain satisfied with our performance in terms of leadership and care quality.
“Our hospitals like most others across the country have faced enormous challenges recently, resulting in a deficit position at the end of the financial year. There are a number of causes for this, chiefly the payments we receive not covering the actual cost of the services provided.”
A Monitor spokeswoman said it will continue to scrutinise the trust’s performance and may take further action “if necessary”.
Trust and Monitor press statements
8 April 2015
- Department of Health and Social Care (DHSC)
- East Midlands
- EAST RIDING OF YORKSHIRE PCT
- Keogh review
- NHS Lincolnshire East CCG
- NHS North East Lincolnshire CCG
- NHS North Lincolnshire CCG
- NORTHERN LINCOLNSHIRE AND GOOLE HOSPITALS NHS FOUNDATION TRUST
- Yorkshire and the Humber