This action follows an investigation by the regulator into long waiting times for A&E patients and deteriorating finances at the trust.
Subsequently, the trust made significant progress in reducing the length of waiting times for patients using its A&E service. However, its finances have continued to worsen and the trust is now forecasting a £8 million deficit in 2014/15.
Monitor has now secured legally binding commitments from the trust that it will develop and implement:
a robust strategic plan to address its financial decline
an effective financial recovery plan for breaking even
The trust has committed to work with other local healthcare organisations in drawing up the plans which the regulator will monitor.
Katherine Cawley, Regional Director at Monitor, said:
The Dudley Group has reduced waiting times for patients in A&E, but it now needs to show a similar focus to address its financial issues.
Our action today is designed to support the trust’s efforts to balance its books. We want Black Country residents using its services to continue enjoying quality care for the foreseeable future.
We will continue to monitor the trust’s progress in achieving this and won’t hesitate to take further action if necessary.