Isle of Wight NHS Trust to end year £30m in deficit with a ‘significant cash flow problem’

The Isle of Wight NHS Trust is now on track to end the year with a deficit of £30 million, with agency spend at £9.1m, double the recommended NHS ceiling.

St mary's hospital

The Isle of Wight NHS Trust is experiencing a ‘significant cash flow problem’, as it ends January in a deficit of £2.8 million.

A report, seen by the NHS trust board yesterday, said it would not be possible for the trust to meet its financial deficit target this year.

£30m deficit at year end
Instead, the trust is now on track to end the year with a deficit of £30 million.

Loans of £16 million have already been secured from the Department for Health and Social Care (DHSC).

A request for a further £7.8 million is awaiting approval by the NHS and DHSC.

Payments prioritised to IW and small businesses
Director of finance and deputy chief executive at the trust, Darren Cattell, said:

“We have had to rely on an awful lot of good will of our contractors.”

However, Mr Cattell said the trust continued to prioritise the payment of Isle of Wight and small businesses.

Agency spend £9.1m
Agency spend at the trust is almost double the recommended NHS ceiling, at £9.1 million, compared to £4.6 million.

A new contract for agency staff began in November and the trust said it had seen a ‘price benefit’ from this.

Winter pressures had also cost the trust £400,000.

The trust’s ‘use of resources’ rating has remained scored at four — the worst scoring possible.


This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which OnTheWight is taking part in. Some alterations and additions may be been made by OnTheWight. Ed

Image: © Used with the kind permission of Auntie P

Friday, 8th February, 2019 1:42pm

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Filed under: Health, Island-wide, Isle of Wight News, Top story

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7 Comments on "Isle of Wight NHS Trust to end year £30m in deficit with a ‘significant cash flow problem’"

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davimel

It’s a shame that any cuts come from the medical side where the non-medical seem to keep on chugging along quite happily.. perhaps a review of Non-medical senior management salaries might save a few hundred thousand…. but then again they would probably employ a company to undertake the review, costing even more!

Another Perspective

It is NOT a ‘cash flow problem’

The cash is ‘flowing’ in precisely the Governments desired direction, into the coffers of private service roviders and staffing agencies.

johnr

Not Rocket Science, increasing population and lack of more readily available options such as GP appointments etc.

alisonjane
Strange you should ask about fraud. Last year MARS was offered to try and cut costs, aimed at ‘middle management posts.’ Some that took it were ‘paid’ to leave. Meanwhile their posts have been filled by ‘interim staff’ who are being paid the same rate and having travel expenses paid for by the Trust…but only on ‘temporary contracts’ until the original post holders return in four months… Read more »
chartman

Anybody checked to see how much fraud is going on in St Marys ??? – See BBC program every morning at 9:15 am. It’s shocking how much is being defrauded inside the NHS, from the bottom to the top of the tree. It’s multi millions.A big eye opener.

Another Perspective

I believe the Trust’s Ambulance Service had a nice little ‘Sweetie Shop’ running with Sainsbury’s Nectar Points a few years ago. Then suddenly decided to donate the £1000’s of point accrued to charity.

Shame they couldn’t have bought something useful with the points value, like a defibrillator, or some other essential piece of medical equipment. I am sure Sainsbury’s would have been only too willing to oblige.

richardshanklinite

I would hope that all the managers get together and approach both Sainsburys and Morrisons for say a six month supply quote for fuel?