Monitor opens investigation into deteriorating financial position at Heart of England NHS Foundation Trust
The regulator has opened an investigation at Heart of England NHS Foundation Trust after it reported that its heading for a deficit.
The health sector regulator has launched an investigation after Heart of England NHS Foundation Trust reported it is heading for a significant deficit by the end of the financial year.
The trust, which provides NHS services for approximately 1.2 million people in Birmingham, Solihull, Sutton Coldfield and South Staffordshire, has recorded a £29.5 million deficit in the first 5 months of this financial year, and has had to use its cash reserves for the day-to-day running of the trust.
Monitor is concerned about the speed of the deterioration and lack of a robust plan to address these issues. Our investigation will seek to understand the underlying financial risks, the challenges the trust faces and what needs to be done to fix it.
Marianne Loynes, Regional Director at Monitor said:
This trust has slipped worryingly into the red, using its cash reserves to prop up the day-to-day running. A deficit of £29.5 million in 5 months is simply not acceptable and we want to establish what can be done to ensure the trust continues to provide the services local patients value.
An announcement about the outcome of the investigation will be made in the next few weeks.