The NHS financial regulator Monitor has opened an investigation into how a hospital trust that had predicted a £2.2m surplus by the end of next March is already running a £12.6m deficit.
Doncaster and Bassetlaw Hospitals trust, responsible for hospitals in south Yorkshire and north Nottinghamshire, announced last week that a review of the first five months of this year’s accounts found inaccuracies in financial reporting.
Matthew Lowry, the director of finance and infrastructure at the hospital, who found that the trust had been losing money every month, had resigned, said the trust, as “the person ultimately responsible for the systems of financial management and control”. He will leave his job on 4 November.
Monitor’s regional director, Paul Chandler, said: “People are relying on Doncaster and Bassetlaw to provide them with high quality healthcare now and in future. Therefore, we need to make sure the trust can do this in a sustainable way and within its budget.”
Worried that the deficit was unplanned at a time when the NHS is under severe financial pressure, Monitor is concerned that the scale of the deterioration in the financial position will force the trust to ask for additional funding.
The trust said: “There is no evidence of fraud at this time. NHS Protect, who lead on work to identify and tackle crime across the health service, have been informed and our local counter-fraud specialists are maintaining close liaison with the external financial investigation team brought in by the trust.”
Mike Pinkerton, the trust’s chief executive, said in a statement issued last week that initial concerns had been raised through its own internal financial controls. After further checks had revealed inaccuracies in reporting, hecalled for an external investigation. “Patients are in no way affected by the financial position as patient care continues as normal,” he said.
Pinkerton made clear he was staying on. “I believe my role is to steady the ship and steer us through these difficult challenges ensuring we remain focused on patient care.”
The trust has saved £45m in recent years while investing in services. Pinkerton said: “There does come a point when it becomes very difficult to continue to make the savings required and meet the pressures of additional demand while maintaining and improving quality.”
The Care Quality Commission, which regulates hospital safety and standards, said in a report last week that issues of safety, effectiveness and responsiveness regarding its services all required improvement.
