Keep up to date with the latest news delivered direct to your Inbox.
"Significant Savings" Required At Treliske
7:04am 25th November 2014
Pirate FM has learnt Cornwall's biggest hospital is overspending by more than a million pounds a month.
Bosses will be told it is likely to represent a "material financial risk" and they need to make "significant savings" in the next five months.
It is being blamed on seeing more patients - and trouble recruiting enough staff.
The news that the hospital's long-running financial recovery plan has slipped badly off target is contained in board papers, ahead of a meeting on Thursday.
They reveal that the hospital has slipped to the second lowest possible internal NHS rating, meaning officials will find it harder to borrow money to fund building and refurbishment work.
The Deputy Director of Finance writes: "Under Monitor's Risk Assessment Framework the overall financial rating score has now declined to a 2 which is as a direct consequence of the continued over spending
against budget within the divisions. Monitor's Risk Assessment Framework describes a level 2 rating as 'likely to represent a material level of financial risk.'"
The overspending by clinical services alone is around £1.25m a month.
Joe McKenna from Health Initiative Cornwall told Pirate FM: "The fact they're overspending doesn't worry me in the first instance - it's just proof positive they never had the money to go ahead and deliver those services. What I'm more worried about is some accountant stepping in and saying, 'You've got to stop spending completely.'
And he warned cutting the hospital's investment programme from £23.6m to £17.8m could backfire: "It's a horrifying situation because the capital programme is your future - it's the buildings, it's the additional wards, it's better equipment.
"If they're having to reduce that spend against what they would like to do it certainly doesn't bode well for Cornwall's future, as far as healthcare is concerned."7:04am 25th November 2014
Share This StoryTweet
If you would like to submit a query or provide more information on this story please get in touch below.
UPDATE: Overturned car blocks busy A30
Cornwall News: This is why you got stuck at Victoria on Tuesday
Deportation protest halts flights out of Stansted Airport
National News: Flights at Stansted were halted temporarily after protesters blocked a runway at the airport.
Critically endangered Indochinese tiger cubs found in Thai jungle
World News: A "miraculous" new breeding population of a critically endangered tiger species has been found in a jungle in Thailand.
Leyton Orient stave off winding up order after £1m pledge by owner
Sports News: A £1m pledge from the owner of Leyton Orient FC has saved the club from a winding-up order, but fans believe the club is still in "mortal danger".
VIDEO: Cornwall News Headlines - 25th November 2014
Cornwall News: Watch today's local news headlines, including how Cornwall Council plans to cut £200,000,000 from it's budget - whilst putting our council tax up - direct from the Cornwall Newscentre with Tristan Hunkin.