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University Hospital North Staffordshire forecasts £9.8m deficit | |
(about 3 hours later) | |
A Staffordshire hospital has warned it faces a deficit of almost £10m by the end of the financial year. | |
University Hospital North Staffordshire's announcement (UHNS) comes a week after its finance director left after 11 months with the trust. | University Hospital North Staffordshire's announcement (UHNS) comes a week after its finance director left after 11 months with the trust. |
In papers due to go before its board on Friday, the trust said it would "fail to meet its statutory duty to deliver a break even position". | In papers due to go before its board on Friday, the trust said it would "fail to meet its statutory duty to deliver a break even position". |
This was despite forecasting a £2m surplus at the beginning of the year. | This was despite forecasting a £2m surplus at the beginning of the year. |
The hospital blamed a 15% rise in Accident and Emergency (A&E) treatment in the last year. | |
It said it had also been forced to pay premiums to locums and agency staff to support the "unexpected" level of emergency care. | |
A&E admissions are also expected to rise further over the winter period. | |
The forecast £9.8m shortfall by the end of March 2013 also assumes "additional income" of £14m, although the trust said it only partially covered its extra costs. | |
Auditors said "urgent action" was needed to put the trust in a "stable financial position". | |
They added that schemes designed to cut A&E admissions have proved inadequate, while the trust had become too reliant on one-off funding. | |
New finance director | New finance director |
Chief executive Julia Bridgewater said she was "extremely disappointed" by the position, having "delivered against financial plans for the last seven years". | |
She said the trust was putting in measures to manage its finances for the next four months, including a review of current finance systems and work with the strategic health authority on a recovery plan. | |
She said the quality and safety of services would not be affected. | |
UHNS is one of four major trauma centres across the West Midlands and opened a £400m A&E unit in March. | UHNS is one of four major trauma centres across the West Midlands and opened a £400m A&E unit in March. |
The hospital's financial director John Maddison announced last week that he would leave the trust. | The hospital's financial director John Maddison announced last week that he would leave the trust. |
Ms Bridgewater said he had worked "extremely hard" to "manage a very challenging financial agenda". | |
UHNS said Mr Maddison was leaving to "pursue other opportunities closer to his home in County Durham". | UHNS said Mr Maddison was leaving to "pursue other opportunities closer to his home in County Durham". |
The hospital said it was advertising for an interim director of finance and hoped to advertise for a permanent post in the new year. | The hospital said it was advertising for an interim director of finance and hoped to advertise for a permanent post in the new year. |
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