• King’s College Hospital FT “downside re-forecast” predicts £96.4m deficit this year
  • More optimistic scenario forecasts £70.6m deficit
  • Report published days after finance director resigned

A Shelford Group trust has revealed a £31.8m deterioration in its financial position after carrying out a re-forecast ordered by NHS Improvement.

King’s College Hospital Foundation Trust’s board papers, published yesterday, revealed the “downside re-forecast” of its financial position, which would see the trust with a £96.4m deficit by the end of 2017-18.

The news of the re-forecast comes after finance director Colin Gentile resigned from the £1.1bn turnover organisation.

A more optimistic “stretching base case” for the trust would see it end the financial year with a deficit of £70.6m, against a plan of £38.8m.

This scenario is dependent on the trust delivering a further £44m in savings over the last third of the financial year, having already saved £22m.

The London provider’s cash balance is predicted to fall as low as £3m in the week of 22 December.

The teaching trust is applying to NHS Improvement for an £18.1m “interim revenue support” payment.

Acting finance director Alan Goldsman informed the board meeting that a fundamental problem was that the trust was doing more work than it was being paid for under block contracts with Lambeth, Southwark and Bromley clinical commissioning groups, while doing fewer procedures than it was paid for on tariff.

The trust is also in a £4m contract dispute with NHS England. It is not known which specialist services this relates to but the board meeting that heard the matter may proceed to formal arbitration with the national commissioning body. The meeting was told that the trust had NHSI’s backing in the matter.


Exclusive: Shelford Group trust risks £96m deficit