Basildon and Thurrock needs £14m savings to break even in 2013-14

The trust board heard that its underlying cost base had increased significantly in the last quarter of the financial year. This was due to the impact of the increased emergency demand which was only reimbursed at 30 per cent of tariff but had a major impact on the rest of the trust in terms of admitting and treating other patients. It meant that as the financial year ended the trust was making a loss of around £200,000 a week.

The report warned that failing to reinstate elective work and having to outsource it to the private sector represented a major risk to the trust’s finances this year, along with agency spend. The trust expects to have made a small surplus of £400,000 in 2012-13 despite the impact of emergency pressures.