Hospital trust boss tells staff ‘we will run out of cash’

York Teaching Hospital NHS Foundation Trust confirmed the organisation which runs service out of Scarborough Hospital will run out of money by October.
York Teaching Hospital NHS Foundation Trust confirmed the organisation which runs service out of Scarborough Hospital will run out of money by October.

The trust which runs Scarborough Hospital will run out of money in October, according to its chief executive.

Leaked emails, seen by The Scarborough News, confirm the York Teaching Hospital NHS Trust has a £10.5 million shortfall against plan and a deficit of £13.8 million after month four and it will have to borrow money to make sure it can operate.

Patrick Crowley wrote to members of the executive board and senior managers: “For the first time in the trust’s long history we will run out of cash and will have to enter the Foundation Trust Distressed Cash regime.”

He goes on to confirm the loan will result in interest payments, further increasing the trust’s costs.

This will place the trust under “significant” enhanced scrutiny and will start to see the removal of investment choices.

A draft recovery plan has now been drawn up, he said, and the trust will work with regulators and others that are now experiencing similar difficulties.

Mr Crowley wrote: “Managing our resources as effectively as possible is vital to the security and stability of the clinical care we offer as well as allowing ourselves the choice to continue to invest in the services we have all worked so hard to develop.”

A spokesman for York Teaching Hospital NHS Foundation Trust said: “Across both the local and national health system there are significant financial pressures and the Trust is not alone in needing to tackle a deteriorating financial position, whilst ensuring the continuation of safe and effective healthcare services to our patients.

“Several years of demanding efficiency targets coupled with increasing costs, for example with agency and locum staff, has made the delivery of our plans all the more challenging.

“The Trust has an excellent history of good financial management, however increasing pressure over recent years have taken their toll. Our organisation is a long way from being the first and almost certainly will not be the last to seek external support.

“We are working closely with our regulator, and other trusts that are experiencing similar difficulties, to draw up financial recovery plans to improve the local financial position.

“There will be some difficult decisions to make but managing our resources as effectively as possible remains our priority to ensure the safety and stability of the clinical care we offer to our patients.

“Staff, or suppliers of services to the Trust, should not be concerned about the ability of the Trust to meet its financial liabilities.”