The regulator is looking into the financial problems, including the introduction and management of the IT system, as it may indicate wider issues with how the trust is being run.
The health sector regulator will also take an in-depth look at the trust’s performance and explore what steps can be taken to address the problems it faces.
Stephen Hay, Managing Director at Monitor, said:
We have launched an investigation into Cambridge University Hospitals NHS Foundation Trust over financial concerns, this investigation will include how the trust handled the introduction of a major new IT system.
We want to know more about the nature of the problems and will explore what can be done to improve things on behalf of patients in Cambridge.
Monitor took separate regulatory action at the trust in 2013 over concerns about finances and the way it was run, this action ended in July last year after improvements were made.
The regulator has not decided whether regulatory action will be required following this investigation and will announce the outcome in due course.