The body which runs Nottingham’s hospitals has revealed a deficit of nearly £50m – in part because it can’t find enough nurses.
Nottingham University Hospitals Trust (NUH) has posted a deficit of £47.2 million for the financial year which ended in March.
In contrast the body, which runs the QMC and City Hospital, had recorded a surplus of £0.8 million the year before.
Bosses said spending on agency staff was a big part of the problem, caused in part by a “national shortage of nurses”.
And the trust is already forecast to record an even bigger deficit of £54.9m for the financial year of 2016/17.
Our most challenging year financially since 2006
NUH Director of Finance Rupert Egginton said: “2015/16 was our most challenging year financially since 2006.
“We lost £30m due to the emergency tariff arrangements with our agency, bank and locum bill last year costing £41.1m, which is 7.7% of our total pay bill.
“This was largely because of nursing vacancies, the national shortage of nurses and safer staffing requirements.”
NUH in numbers: Key financial figures for 2015/16
- £47.2m deficit
- This was posted even though £44.5m worth of savings were made
- £870m income
- £918m expenditure
- £540m spent on staff costs, 59% of total expenditure
- £41.8m spent on agency, 7.7% of staff costs
- £12.1m closing cash balance, which is £24.9m less than the £37m that was recorded at this point last year
Mr Egginton believes the current financial year is unlikely to see an upturn in the trust’s finances.
He said: “This year will be equally, if not more challenging as we are forecasting a year-end deficit of £55m.
“However we have plans to make efficiency savings of £41.3m in 2016/17, which includes reducing our reliance and spend on nurse agency staff.
“We are continuing our international recruitment campaign to attract nurses to NUH and we are giving equal focus on retaining our present nursing colleagues.”
Nottingham University Hospitals is soon taking over Sherwood Forest Hospitals Trust which runs King’s Mill, Newark and Mansfield Community hospitals, after the Care Quality Commission said the latter was under-performing and was rated as ‘inadequate.’
Sherwood Forest Hospitals provides acute healthcare services for 420,000 people across Mansfield, Ashfield, Newark, Sherwood and parts of Derbyshire and Lincolnshire.
