Shropshire hospital bosses refuse to sign off budget
Chiefs at Shropshire's two main hospitals have refused to sign off next year's budget amid fears over a cash shortfall.
The budget presented to the board members of the Shrewsbury and Telford Hospital NHS Trust predicts a gap of £6.2 million between what the trust is expecting in income and what it needs to spend on providing services.
The board decided to note but not approve the budget for 2014/15 – due to come into effect from Tuesday – because of the uncertainty over a series of "risks" to the trust's income.
Chairman Professor Peter Latchford said: "My concern is the risks are so high. I think the mood of the meeting is that this isn't good enough and we need to know more. We are noting it but not approving it."
The board, which met yesterday at the Royal Shrewsbury Hospital, had been told there were a number of outstanding issues which put the budget at risk. The Telford & Wrekin Clinical Commissioning Group, which pays the trust to treat people in the borough, has yet to agree its contract for the year as it is disputing issues, including the cost of rehabilitation services at the Princess Royal Hospital. The contract will now be looked at by an independent arbitration panel on Tuesday and, if the trust loses, may mean up to £2.5 million is lost.
The budget also assumes the trust will get £3 million in "transitional" cash from Shropshire and Telford & Wrekin CCGs, but this is not guaranteed. There is also a risk the trust will face financial penalties if it does not break even but there is no contingency budget to cover a fine, or shortfall if planned spending cuts don't materialise. The trust has failed to break even in the last few years and only balanced the books this year with a £4 million grant from the NHS Trust Development Authority (TDA).
