Hospital trust asks Government for £45m as cash crisis deepens

Hospital trust asks Government for £45million as cash crisis deepens

Hospital trust asks Government for £45million as cash crisis deepens

First published in News
Last updated
Watford Observer: Photograph of the Author by , Senior Reporter

West Hertfordshire Hospitals NHS Trust faces a crippling shortfall of £124 million in eight years unless drastic action is taken to turn its financial performance around.

Meanwhile hospital bosses in charge of Watford General estimate it will cost upwards of £350 million to bring the trust’s ageing estate up to task.

It has emerged they are now seeking £45.7 million of government cash in a bid to curb its spiralling deficit - which is set to double by the end of the year.

Trust chiefs initially reported a revenue deficit of £14 million in April, but following a meeting with the government’s NHS Trust Development Authority (TDA) it is set to revise the debt to £29.5 million.

A report presented to the board this month said: "Following review and meetings with the Trust Development Authority, revised proposals have been prepared that better reflect the contractual position with the trust’s commissioners and include transformation costs that the trust envisage are an essential step in creating a financial viable trust."

It continued: "As a result the forecast outturn and control target against which the Trust would wish to be measured has been revised to a deficit of £29.5m."

In the new business plan, the trust’s finance experts said it would cost approximately £350 million to modernise its buildings in a way that "supports efficient patient care and minimises health and safety risks".

In addition to going cap in hand to the government for more cash, the trust outlined plans to make savings totalling £71.2 million between now and the end of the 2019 financial year.

However, the increased emergency activity the hospitals have seen recently is expected to get worse in the coming years.

And the trust must also find the funds to carry out millions of pounds worth of maintenance backlog to their buildings and electrical systems - in 2009 that work was estimated to cost £66 million.

Mariane Covington, spokeswoman for the trust, said revising the deficit would better reflect the trust’s financial challenges.

She said: "As a trust, we are modelling scenarios which could see our deficit increase to better reflect the challenges we face, including a further rise in the number of emergency patients we are treating and essential spending to further improve the care we provide to our patients.

"Our planned deficit remains at £14 million until any change has been agreed with the appropriate body."

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Comments (11)

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2:41pm Wed 23 Jul 14

The Rover says...

Is this the same trust that has just announced they are spending £25 million on it? What a joke.
Is this the same trust that has just announced they are spending £25 million on it? What a joke. The Rover
  • Score: 4

3:05pm Wed 23 Jul 14

ancientandageing says...

I thought this was a good news story, that the trust was lossing money becouse noone was getting sick anymore but no its a story about the trust lossing money, maybe they ought to look behind the sofa or something?
In all seriousness though thesec storys saden my as much for the accounts eye ontology as anything else, we the people need the health care and they the capatilists will be rubbing their hands with gleee at this, they will carve up the local trust, have increased private provision and a creaping insurance driven health care model.
Enough is enough time to take the NHS back.
I thought this was a good news story, that the trust was lossing money becouse noone was getting sick anymore but no its a story about the trust lossing money, maybe they ought to look behind the sofa or something? In all seriousness though thesec storys saden my as much for the accounts eye ontology as anything else, we the people need the health care and they the capatilists will be rubbing their hands with gleee at this, they will carve up the local trust, have increased private provision and a creaping insurance driven health care model. Enough is enough time to take the NHS back. ancientandageing
  • Score: 4

3:39pm Wed 23 Jul 14

Andrew1963 says...

It is a crisis created by Tory Lansbury's reforms, which caused chaos as PCTS were abolished. Reforms supported by the Lib Dems nationally and locally, that have undermined the finances of health providers like West Herts Hospital Trust. The Trust was never particularly flush with cash, but its own financial health started to plummet from 2011 (you can go online on its own website and read the financial reports from that time to see the rapid decline). The key factor is that the Trust will never get Foundation status and will not be able to build new facilities at Watford , as the disposal of the redundant land at Hemel and St Albans will go back to the central government NHS pot to repay the loans for the Oxhey park access road, heating, IT and cash loans. This means that only central government money can secure new hospital facilities at Watford. Or the gov will force West Herts to merge with another Trust and the future of Watford General will be in doubt
It is a crisis created by Tory Lansbury's reforms, which caused chaos as PCTS were abolished. Reforms supported by the Lib Dems nationally and locally, that have undermined the finances of health providers like West Herts Hospital Trust. The Trust was never particularly flush with cash, but its own financial health started to plummet from 2011 (you can go online on its own website and read the financial reports from that time to see the rapid decline). The key factor is that the Trust will never get Foundation status and will not be able to build new facilities at Watford , as the disposal of the redundant land at Hemel and St Albans will go back to the central government NHS pot to repay the loans for the Oxhey park access road, heating, IT and cash loans. This means that only central government money can secure new hospital facilities at Watford. Or the gov will force West Herts to merge with another Trust and the future of Watford General will be in doubt Andrew1963
  • Score: 6

4:07pm Wed 23 Jul 14

oddjobman says...

I'm very much in favour of an efficiently run hospital service but the reality is that running a hospital in the NHS can never be like running a commercial business. The hospital is a service organisation which is unable to charge the true cost of providing the service, nor can it select which services to offer and decline to offer others. I don't believe that the numbers give a true reflection, they are more like an artist's impression put together to make a point.
The amount of money available to provide the service is decided by people outside the organisation and those actually running it are left to try to make the best of what they've got. In my view they are doing a reasonable job with insufficient resources and it's the faceless bureaucrats (and there are far more of them than are needed) pulling the strings behind the scenes who should own up and take responsibility for the mess.
I'm very much in favour of an efficiently run hospital service but the reality is that running a hospital in the NHS can never be like running a commercial business. The hospital is a service organisation which is unable to charge the true cost of providing the service, nor can it select which services to offer and decline to offer others. I don't believe that the numbers give a true reflection, they are more like an artist's impression put together to make a point. The amount of money available to provide the service is decided by people outside the organisation and those actually running it are left to try to make the best of what they've got. In my view they are doing a reasonable job with insufficient resources and it's the faceless bureaucrats (and there are far more of them than are needed) pulling the strings behind the scenes who should own up and take responsibility for the mess. oddjobman
  • Score: 4

4:34pm Wed 23 Jul 14

theturpster says...

We can't keep complaining about the state of the NHS, if society is happy to blindly give all their disposable income to corporates who offshore as much of their profits to avoid tax. If you want a better service, the money needs to be in the treasury to pay for it. Buy local, buy only what you need, not what you desire. It really is that simple let your money travel up to the treasury, because it sure as hell doesn't make its way down. WE REAP WHAT WE SOW!
We can't keep complaining about the state of the NHS, if society is happy to blindly give all their disposable income to corporates who offshore as much of their profits to avoid tax. If you want a better service, the money needs to be in the treasury to pay for it. Buy local, buy only what you need, not what you desire. It really is that simple let your money travel up to the treasury, because it sure as hell doesn't make its way down. WE REAP WHAT WE SOW! theturpster
  • Score: 4

4:47pm Wed 23 Jul 14

bishopofwatford says...

Well that looks impessive on two counts :
A) why are they proposing to spend first estimate £25mio on new it ?
B) how can the so called health campus project go ahead ? Exactly how much are wayford general putting into this scheme?

If they are cash short should they be going into the property development field?

Come watford general. Spokesperson come out with the plain unvarnished truth not some airy ,fairy spin!
Well that looks impessive on two counts : A) why are they proposing to spend first estimate £25mio on new it ? B) how can the so called health campus project go ahead ? Exactly how much are wayford general putting into this scheme? If they are cash short should they be going into the property development field? Come watford general. Spokesperson come out with the plain unvarnished truth not some airy ,fairy spin! bishopofwatford
  • Score: 1

7:19pm Wed 23 Jul 14

Trust hotlines says...

The new IT cost was £33m then down-priced on Monday. It ain't going to happen. I would suggest the Trust get rid of all the interims costing huge amounts and the agency fees plus the interim directors who run their consultancy agencies paying themselves the daily rate no less than £1k a day plus their commissions on top of that. Work it out that's where millions of NHS money is pouring away not on patient care. Also count up all the new directors - never seen so many, what in hell are they all doing. Just lining their own pockets certainly not interested in patients or even Hertfordshire as they don't live here - none of them. All should be sacked including the CEO.
The new IT cost was £33m then down-priced on Monday. It ain't going to happen. I would suggest the Trust get rid of all the interims costing huge amounts and the agency fees plus the interim directors who run their consultancy agencies paying themselves the daily rate no less than £1k a day plus their commissions on top of that. Work it out that's where millions of NHS money is pouring away not on patient care. Also count up all the new directors - never seen so many, what in hell are they all doing. Just lining their own pockets certainly not interested in patients or even Hertfordshire as they don't live here - none of them. All should be sacked including the CEO. Trust hotlines
  • Score: 11

9:25pm Wed 23 Jul 14

Cuetip says...

The Rover wrote:
Is this the same trust that has just announced they are spending £25 million on it? What a joke.
Bad news - no new hospital, Health Trust broken, and plans to close more A & E hospitals to pay for a new hospital somewhere in the future.

Manana news recycled – watch for 2015 election scotch mist donation as in 2010 to sway the voters.

Wealth campus news – Costa Coffee and Boots might opportunistically open outlets for blood pressure sufferers.
[quote][p][bold]The Rover[/bold] wrote: Is this the same trust that has just announced they are spending £25 million on it? What a joke.[/p][/quote]Bad news - no new hospital, Health Trust broken, and plans to close more A & E hospitals to pay for a new hospital somewhere in the future. Manana news recycled – watch for 2015 election scotch mist donation as in 2010 to sway the voters. Wealth campus news – Costa Coffee and Boots might opportunistically open outlets for blood pressure sufferers. Cuetip
  • Score: 3

11:34pm Wed 23 Jul 14

Trust hotlines says...

Watford Campus?!? Hands up who recalls the Trust and the CEO claiming on record and in Inside Out on BBC1 earlier this year that the revised clinical strategy was out for consultation with its clinical staff and this would shape and determine the site behind Vicarage Rd and the new hospital itself? How quiet this has become? Do you know why? It's because the strategy was written last year at huge expense by an external organisation and is now shelved and likely gathering dust somewhere. Of course the Trust was banking on no one remembering. WRONG!!! Furthermore the organisation which I know the name of employed one of the new non executive directors. Coincidence? You tell me. The previous Trust Board was corrupt but this one ain't know better and is in fact worse, the reason is they pretend there is more openness but in fact what is released is very carefully cherry picked and the public is being hoodwinked right down the red line. Likely all the directors are on short term contracts - rats leaving a sinking ship - and the captain's next commission already in the bag.
Watford Campus?!? Hands up who recalls the Trust and the CEO claiming on record and in Inside Out on BBC1 earlier this year that the revised clinical strategy was out for consultation with its clinical staff and this would shape and determine the site behind Vicarage Rd and the new hospital itself? How quiet this has become? Do you know why? It's because the strategy was written last year at huge expense by an external organisation and is now shelved and likely gathering dust somewhere. Of course the Trust was banking on no one remembering. WRONG!!! Furthermore the organisation which I know the name of employed one of the new non executive directors. Coincidence? You tell me. The previous Trust Board was corrupt but this one ain't know better and is in fact worse, the reason is they pretend there is more openness but in fact what is released is very carefully cherry picked and the public is being hoodwinked right down the red line. Likely all the directors are on short term contracts - rats leaving a sinking ship - and the captain's next commission already in the bag. Trust hotlines
  • Score: 6

2:52am Thu 24 Jul 14

bishopofwatford says...

Trust hotlines wrote:
Watford Campus?!? Hands up who recalls the Trust and the CEO claiming on record and in Inside Out on BBC1 earlier this year that the revised clinical strategy was out for consultation with its clinical staff and this would shape and determine the site behind Vicarage Rd and the new hospital itself? How quiet this has become? Do you know why? It's because the strategy was written last year at huge expense by an external organisation and is now shelved and likely gathering dust somewhere. Of course the Trust was banking on no one remembering. WRONG!!! Furthermore the organisation which I know the name of employed one of the new non executive directors. Coincidence? You tell me. The previous Trust Board was corrupt but this one ain't know better and is in fact worse, the reason is they pretend there is more openness but in fact what is released is very carefully cherry picked and the public is being hoodwinked right down the red line. Likely all the directors are on short term contracts - rats leaving a sinking ship - and the captain's next commission already in the bag.
Here ,here it is time we put those highly paid consultant hirers on the spot and demanded honest answers"they are our servants supposedly doing what is best for watfodonians.....not lining their own pockets with backslapping deals ,more than likely arranged by special handshake....no stand up and demand answer not puff and drivel!COYH.
[quote][p][bold]Trust hotlines[/bold] wrote: Watford Campus?!? Hands up who recalls the Trust and the CEO claiming on record and in Inside Out on BBC1 earlier this year that the revised clinical strategy was out for consultation with its clinical staff and this would shape and determine the site behind Vicarage Rd and the new hospital itself? How quiet this has become? Do you know why? It's because the strategy was written last year at huge expense by an external organisation and is now shelved and likely gathering dust somewhere. Of course the Trust was banking on no one remembering. WRONG!!! Furthermore the organisation which I know the name of employed one of the new non executive directors. Coincidence? You tell me. The previous Trust Board was corrupt but this one ain't know better and is in fact worse, the reason is they pretend there is more openness but in fact what is released is very carefully cherry picked and the public is being hoodwinked right down the red line. Likely all the directors are on short term contracts - rats leaving a sinking ship - and the captain's next commission already in the bag.[/p][/quote]Here ,here it is time we put those highly paid consultant hirers on the spot and demanded honest answers"they are our servants supposedly doing what is best for watfodonians.....not lining their own pockets with backslapping deals ,more than likely arranged by special handshake....no stand up and demand answer not puff and drivel!COYH. bishopofwatford
  • Score: 4

6:35pm Thu 24 Jul 14

Veritas says...

Get back some money from that Disgusting man Filowiski.

His pension alone is £140,000 a year.

People are suffering in the NHS because people like this are taking all
the money out of the system, money which could be used for
patient care.

There is something wrong, when these directors and non medical Consultants can bleed the NHS of so much money?
Get back some money from that Disgusting man Filowiski. His pension alone is £140,000 a year. People are suffering in the NHS because people like this are taking all the money out of the system, money which could be used for patient care. There is something wrong, when these directors and non medical Consultants can bleed the NHS of so much money? Veritas
  • Score: 4

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