City hospital chiefs have warned that they have to ‘rapidly’ address its ongoing financial crisis.
The Newcastle upon Tyne Hospitals NHS Foundation Trust - which runs both the Royal Victoria Infirmary and Freeman hospitals - has racked up a £2.5m deficit just two months into the new financial year.
Trust bosses say that ‘slippage’ in its efforts to make £30m savings is responsible for the early deterioration in its financial position.
In a report to the trust’s board, chief executive Dame Jackie Daniel said: “It is disappointing to see a further deterioration in our financial position just month two into the financial year, and this is due to slippage in delivery of our cost improvement programme.”
Dame Jackie, who was appointed to lead the trust earlier this year after Sir Leonard Fenwick was sacked for gross misconduct, added: “We are working closely with our leadership colleagues to try to rapidly address the situation but it is important that everyone in the organisation plays their part in ensuring we operate as efficiently as possible if we are to continue to invest in services and provide outstanding care.”
The trust managed to find efficiency savings of £29m in the last financial year, but says it is now proving ‘extremely challenging’ to meet its latest cost improvement target without compromising the quality of its services.
A trust spokesman said: “The trust, like other NHS organisations across the country, continues to operate in an increasingly challenged financial environment.
“We strive to deliver on-going national efficiency requirements while - importantly - maintaining the quality and safety of services, for which we have developed a national reputation.
“Last year and in previous years, we achieved efficient savings of £29m without compromising the quality of services provided.
“We will continue to make every effort to ensure we continue to operate as efficiently as possible and to invest in services and provide outstanding care.”
