Monitor could remove directors at financially stricken FT

The regulator said it has taken action against St George’s University Hospitals FT to ensure it “fixes its finances and improves how it is run”.

The trust reported a sudden deterioration in its finances in the last three months of 2014-15, and ended the year with a deficit of £16.8m.

The trust is forecasting the third largest deficit in the FT sector for 2015-16, of £46m. According to documents published by Monitor, it plans to request a £52m bailout from the Department of Health.

The trust has agreed to several measures to improve its position, including an action plan to improve its financial planning and management, and drawing up a long term strategic plan.

Monitor has also added a further condition to St George’s licence that requires an improvement in the performance of its board.

The new condition has been published on the regulator’s website. The document says: “Any failure to comply with the additional licence condition would render the licensee liable to further formal action by Monitor.

“This could include requiring the licensee to remove one or more of the directors or members of the council of governors.”

The condition notice said the trust “does not as yet have a credible recovery plan” and “has not been able to articulate fully so far the key drivers and underlying reasons for the rapid deterioration in its financial position, albeit that it has recently commissioned external support to assist it in this”.

Minutes of Monitor’s board meeting in April said that officers would work to “understand any lessons learned” for its FT assessment process, given that St George’s financial deterioration came to light just weeks after it was authorised. This work has not yet been published.

The £740m-turnover trust said it will revisit its current £43m saving plans to identify new savings and income growth.

Trust chief executive Miles Scott said: “The decline in our operational and financial performance occurred at a time when the NHS nationally, particularly hospital trusts, was under a great deal of pressure.

“Patient safety remains paramount. I am proud that we continue to have low mortality rates, impressive results in the national stroke services audit, and – from our most recent Care Quality Commission inspection – a rating of ‘good’ for our services overall, with some being highlighted as ‘outstanding’.”