The Isle of Wight NHS Trust will end the year in a ‘planned’ deficit of £18.5 million.
This month, the Trust is operating in a financial deficit of £2.1m.
To keep services running, the Trust has applied for loans from the Department of Health for £1.6m in April, and £1.8m in May. A request for a loan of £1.8m for June has just been made.
According to papers approved by the Trust board yesterday (Thursday), the cash position for the Trust remains a ‘significant risk in terms of working capital to pay suppliers on time’.
Isle of Wight suppliers paid first
However, interim chief financial officer Darren Cattell said the Trust prioritised paying Isle of Wight and small suppliers first.
He said:
“We do not want to compromise the quality of our services, which is why we have applied for the loans.
“We looked at all our suppliers, and prioritised the smaller and local ones because cash flow to them is absolutely critical.”
Double planned agency spend
Agency staff spend at the Trust is also higher than planned (see report from October on recruitment and financial crises).
The total agency budget for 2018/19 is £4.6m, however, total spend to date has been £1.2m.
Mr Cattell said last year, agency spend was twice the budgeted amount, although a recruitment plan was in place to hire and retain more staff.
Board member Charles Rogers said:
“We have really got to get to grips with agency spend.”
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This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which OnTheWight is taking part in. Some additions by OnTheWight. Ed
Image: © Used with the kind permission of Auntie P
