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Hospital chiefs' hope to save millions dashed as annual loss totals £39m

PUBLISHED: 17:23 01 April 2010 | UPDATED: 11:32 12 August 2010

HOSPITAL trusts which merged a year ago in a bid to save money are still losing more than £39 million annually.

HOSPITAL trusts which merged a year ago in a bid to save money are still losing more than £39 million

annually.

South London Healthcare Trust recorded a debt of £37.9million at the end of December last year, which was £3.1million more than just a month before, last November.

This comes after PFI hospitals Princess Royal University Hospital, Farnborough (pictured), and Queen Elizabeth Hospital, Woolwich, merged with Queen Mary's Hospital, Sidcup, last April.

At the time, bosses claimed the three hospitals' debt was £187.2 million but they hoped the merger would save the sites a total of £2.6million in its first year, rising to £3.2million the year after.

Now bosses admit that they "haven't yet had the full benefits realisation of the merger in terms of savings from restructuring the organisation".

A Trust spokesperson added: "Our initial focus on improving quality of care meant that the restructuring from a site-based management structure to a divisional cross-site system hadn't been implemented until before Christmas.

"The restructuring has allowed the Trust to start reducing the workforce from the top end management side of the organisation and this process will continue into the next financial year." HOSPITAL trusts which merged a year ago in a bid to save money are still losing more than £39 million

annually.

South London Healthcare Trust recorded a debt of £37.9million at the end of December last year, which was £3.1million more than just a month before, last November.

This comes after PFI hospitals Princess Royal University Hospital, Farnborough (pictured), and Queen Elizabeth Hospital, Woolwich, merged with Queen Mary's Hospital, Sidcup, last April.

At the time, bosses claimed the three hospitals' debt was £187.2 million but they hoped the merger would save the sites a total of £2.6million in its first year, rising to £3.2million the year after.

Now bosses admit that they "haven't yet had the full benefits realisation of the merger in terms of savings from restructuring the organisation".

A Trust spokesperson added: "Our initial focus on improving quality of care meant that the restructuring from a site-based management structure to a divisional cross-site system hadn't been implemented until before Christmas.

"The restructuring has allowed the Trust to start reducing the workforce from the top end management side of the organisation and this process will continue into the next financial year.

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