FINANCE: Milton Keynes Hospital NHS Foundation Trust has admitted that it is “very likely to be in significant breach of its terms of authorisation” after running up an estimated deficit of more than £6m during 2010-11.
The hospital’s year-end financial position is yet to be audited, but is forecast to show a £6.2m deficit. Trust papers say the “underlying deficit” is £3.2m.
The trust’s financial summary, published in board papers for its April 27 meeting, gives its overall financial risk rating the worst possible score of one out of five.
The report explains that the rating is described in Monitor’s 2010-11 compliance framework for foundation trusts as meaning the trust is “very likely to be in significant breach of authorisation”. The position is driven by the operational deficit, and “working capital facility not in place”, it says.
The trust has implemented a two-year turnaround programme to get back into surplus. It was initially placed in significant breach of its authorisation by Monitor in March last year, mainly for reasons about quality governance.