Care trust is free of huge debt at last
Jul 26 2008 by Chris Robinson, The Journal
THE long-running £13.5m debt held by a North East care trust has finally been cleared. The Northumberland health body had been labouring under a multi-million pound deficit for years, but managed to balance its books in 2007.
A series of painful savings – including cuts to GP services – were made last year to help improve financial efficiency. And the newly acquired stability in Northumberland Care Trust has been rewarded by the North East Strategic Health Authority, which has taken on responsibility for the rest of the debt.
Bosses said the decision would also enable the trust to get on with the more important business of health care for the county’s residents.
NHS North of the Tyne welcomed the action and applauded the new financial control exercised by the care trust.
A spokeswoman said: “The SHA has always taken the view that it is the responsibility of individual NHS organisations in the North East to balance their books and keep their expenditure within available income.
“In recent years, the Northumberland Care Trust has not done this and lived beyond its means.
“However, the care trust lived within its resources last year, 2007/08, and has now set a recurrently financially balanced budget for 2008/09.
“Given this very positive progress and in line with agreements reached in other parts of the North East, the SHA has agreed to take over responsibility for the care trust’s historical debt over the next two to three financial years.
“The SHA can only do this because the care trust is now in recurrent financial balance. It has its own resources available for this, and is in a strong enough financial position to take on this obligation.
“The advantage of the SHA taking over this responsibility is to enable the trust to focus on its primary purpose of improving healthcare for people in Northumberland.”
The announcement came as £63m of extra funding was agreed by the boards of Newcastle Primary Care Trust , North Tyneside PCT and Northumberland Care Trust. Funding will mean certain chronic conditions could receive treatment in their own homes.
For previous stories about Northumberland Care Trust's cash crisis, click the links below
Share
