FINANCE: A Yorkshire hospital trust has begun addressing its huge financial challenge, but will later need to attempt major service reconfiguration, and may ultimately face being split up.

Mid Yorkshire Hospitals Trust - which was expected to record a £19.7m deficit for 2011-12 - is the subject of this week’s HSJ Local Briefing.

A turnaround chair and chief executive team joined in March. Chief executive Stephen Eames has announced rapid cost improvement measures.

He has also published a strategy document identifying challenges including “establish a clinically and financially viable range of services that can be sustained for the long term”.

However the HSJ Local Briefing analysis identifies that over the next year to 18 months the trust will need to try to put forward major service changes, likely to include sensitive topics such as A&E, maternity and children’s services.

In a similar period of time, if the trust’s new leaders or national management decide it cannot become viable as a single NHS trust, they will look at other options for the organisation. The most likely - but far from certain - is that its three component hospitals could be separated, and taken over by other local provider organisations.

Analysed: the wider effect of Mid Yorkshire Hospitals Trust’s financial woes