Scarborough's NHS Trust has £32m of historic debt written off
The NHS trust which runs York and Scarborough hospitals has had more than £32 million in historic debt written off by the Government.
The York Teaching Hospital NHS Foundation Trust has been allocated its share of the £13.4 billion package designed to be a major financial reset for NHS providers.
The package, which came into force on April 1, will provide much-needed financial support during the pandemic and also includes new ways to borrow money moving forward.
The York trust’s share of the funding came to £32,140,000, it has been revealed.
Health Secretary Matt Hancock said the change will mean hospitals will get all the necessary funding to carry out their emergency response, despite many hospitals cancelling or limiting their usual services such as elective surgery or walk-in clinics due to the virus.
He said: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.
“[The] £13.4 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.
“I remain committed to providing the NHS with whatever it needs to tackle coronavirus, and the changes to the funding model will give the NHS immediate financial certainty to plan and deliver their emergency response.
While many NHS trusts manage strong finances, under the existing rules, some took out loans to plug financial gaps in their day-to-day (revenue) or capital (infrastructure) budgets.
Under the new rules set out in a letter to all NHS trusts, should hospitals need extra cash this will be given with equity, rather than needing to borrow from the government and repay a loan.
The York Teaching Hospital NHS Foundation Trust has been approached for a comment.
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