PERFORMANCE: Monitor has found that Peterborough and Stamford Hospitals NHS Foundation Trust is in significant breach of the terms of its authorisation.
The regulator’s decision is a result of the serious financial challenges the trust is facing.
Monitor’s board found the trust to be in significant breach due to its failure to comply with the following terms of its authorisation:
- exercising its functions effectively, efficiently and economically;
- governance; and
- financial viability.
In particular, Monitor said it has concerns relating to the trust’s current financial position and board oversight of financial planning.
“The trust is in a serious financial position and work on a turnaround plan has not progressed at the necessary pace to address the challenges it is facing,” the regulator said.
The trust has a “long term challenge” to deliver the government’s efficiency requirements and to support the costs of its PFI contract following the relocation of services to a new hospital, Monitor warned.
However, it said: “After carefully considering all the available evidence, Monitor’s board decided not to use its formal intervention powers at this stage.
“Monitor will continue to scrutinise progress of the trust’s performance, in particular the delivery and implementation of an effective turnaround plan,” it added. “Should the trust fail to deliver timely and sustainable progress towards full compliance with its terms of authorisation, Monitor is likely to consider formal intervention.”
11 October 2011