FINANCE: North West London Hospitals Trust has said it cannot repay a Department of Health working capital loan of £14.3m without support from NHS London’s challenged trust board.
A report to the trust’s board said: “The cashflow forecast for 2012-13 indicates that the trust will not be able to make repayments due on the working capital.
”The strategic health authority [NHS London] has agreed to the trust submitting a financial plan that does not include repayment. However if the trust gains full access to funds under the SHA medium term financial strategy then this will enable the loan to be repaid.
“The trust has been informed that the implication of not being able to repay the DH loan is an automatic rating of underperforming,” it added.
“Successful CTB application will reinstate the ability and expectation of loan repayments. In the interim, local commissioners have provided temporary financing.”
Finance report (attached, right)