Monitor takes enforcement action against West Midlands trust

The regulator launched a probe into the West Midland trusts last July because of the deterioration in its financial performance and a failure to hit the national four hour accident and emergency target.

While Monitor judged the trust had made “significant progress” in cutting waiting times for patients in A&E, it said its finances had continued to worsen, with an £8m deficit forecast this year.

It has agreed legally binding commitments with Dudley Group that the trust will develop and implement a “strategic plan” to address its financial decline and a “financial recovery plan” for breaking even.

Katherine Cawley, Monitor’s regional director, said the trust needed to show a “similar focus to address its financial issues” as it had demonstrated when reducing A&E waiting times.

She said the regulator’s action would “support the trust’s efforts to balance its books”.

Paula Clark, chief executive of Dudley Group, said the trust was beginning to save money through the introduction of strict controls on vacancies and a process to reduce its workforce by 400 posts over two years.

She added: “We are pleased that Monitor has closed the element of their investigation about the four hour target.”