FINANCE: Tameside Hospital Foundation Trust has said it needs a £25m loan this year to keep paying staff and suppliers.

The troubled Manchester trust is planning a deficit of £25.8m in 2015-16 and says it needs the money “to mitigate against the adverse cash flow”, according to board papers for last month.

Tameside was loaned more than £14m by the Department of Health in 2014-15 to help it manage a forecast deficit of £18.2m, and it is believed to be clinically and financially unsustainable in its current form.

Tameside Hospital

Tameside Hospital FT is planning a deficit of £25.8m in 2015-16

A contingency planning team made up of PwC consultants is currently conducting a review into whether Tameside has a sustainable future as an “integrated care organisation” providing public health, social care and wellbeing services. The team is due to complete its review in July.

According to the board papers, the terms of the loan, including whether it will have to be repaid “in whole, part or not at all” will be the subject of a business case. The trust will have to submit this to the DH and Monitor following the outcome of the contingency planning team work.

They add that the contingency planning team is supporting the local health economy to make Tameside “sustainable in the long term”.

In addition to its deficit, it was placed in special measures in summer 2013 following the Keogh review of hospitals with high mortality rates.

The trust was rated “inadequate” by the Care Quality Commission last year.

In a statement, the trust said its planned deficit was made up of “a number of factors” including “additional costs” responding to the findings of the Keogh review.

“We have been working hard over the last 18 months to improve the quality of all services at the hospital,” it said. “However, these significant improvements come at a financial cost and this is reflected in the trust’s planned overspend.”