10. September 2012 16:38
Royal Bolton Hospital has been given a temporary £13.5m loan to help pay the foundation trust’s bills and wages.
The bail-out was issued after discussions between the Trust’s new chairman David Wakefield and NHS Bolton Commissioning Group.
Dr Wirin Bhatiani, Chairman of NHS Bolton CCG, said the loan was “designed to be a short-term, in-year measure and will run in parallel with the development of longer-term measures and solutions”.
The money will be issued to the Trust between September and December. However, it is unclear who will fund the cash advance. Talks are still ongoing with the hospital to assess whether the funding will come from Bolton CCG, the DH, Monitor or other sources.
The Foundation Trust’s finances were placed under scrutiny by Monitor earlier this year. The health watchdog intervened in the running of the trust when it replaced Cllr Cliff Morrison as chair after finding finances had “deteriorated significantly”.
At the start of the financial year the trust had a deficit of £1.9m but is still expected to save £20m this year, and £50m over the next three years to meet the QIPP agenda.
But Dr Bhatiani said the most important is to help the trust “with its financial shortfall to make sure it continues to function normally”.
“Discussions will continue about how to get this money back,” he said.
“We have to look at the Bolton NHS pound. The CCG is under the same obligations as the Foundation Trust to deliver a financial balance at the end of the year.”
3. August 2012 13:03
Monitor has been forced to intervene and take control of the running of the Royal Bolton Hospital in an attempt to stabilise its finances.
The regulator has appointed an interim chairman and told hospital directors to appoint a turnaround director and external advisors to tackle its debts.
The hospital began the financial year with a £1.9m deficit leading Monitor to call for “immediate action”.
The hospital had its finances placed under “red risk” by Monitor in a second report which recently criticised its leadership.
Bosses at the failing hospital “acknowledged and accepted” there had been failings but said they would “stabilise” finances without jeopardising patient care.
Monitor’s intervention is the first time this financial year it has invoked formal powers to take over struggling trusts. It said the decision was based on a “worsening financial position” leading to a failure to “exercise its functions effectively, efficiently and economically”.
David Wakefield, the chairman of Milton Keynes Hospital NHS Foundation Trust, has been appointed interim chair.