NHS trust which runs West Suffolk Hospital in Bury St Edmunds to share recovery plan as its financial position deteriorates

A hospital trust which needs to save £38 million over the next three years is due to share a final financial recovery plan with an NHS board.

In papers, released ahead of a board meeting of the NHS Suffolk and North East Essex Integrated Care Board (ICB), it states the ICB’s financial position is 'off plan' by £5.1 million, which is driven primarily by the deficit at the West Suffolk NHS Foundation Trust (WSFT).

In the papers the ICB said: "The year-to-date variance at WSFT has deteriorated by a further £1.5 million.

"If the current run rate continues the full-year variance would be £18 million."

Variance is the difference between a budget's predicted cost and actual cost.

The ICB said WSFT, which runs West Suffolk Hospital, in Bury St Edmunds, and Newmarket Community Hospital, will share a final financial recovery plan with it 'shortly', which will be reviewed at an extraordinary finance committee meeting.

The year-to-date capital spend at the trust is £13.2 million, which is behind plan.

This is mainly due to spending on RAAC (Reinforced Autoclaved Aerated Concrete) and other estates projects, said the ICB.

Internally funded projects are now being reviewed to see whether any can be delayed.

WSFT has also carried out a 'critical review' of interim and non-critical contracts with a view that they should end.

The ICB said financial controls put in place by the trust are likely to have a more material impact from September onwards, with more actions needed.

In his chief executive’s report to the WSFT board of directors meeting in July, Dr Ewen Cameron said: “We are in a significant period of financial constraint and cost savings are critically important over the next three years."

Earlier this month the trust announced to staff that it would be scaling back spending on some employee wellbeing services, including psychological support.

This is part of an overall aim of saving £38 million over the next three years.

While the trust is slowing recruitment, it said not all recruitment has stopped.

Weekly exec-led recruitment meetings continue to assess vacancies.

Recruitment to new clinical and replacement non-clinical roles require Integrated Care Board-level approval.

Temporary staff, such as bank and agency staff, are used on an additional and ad-hoc basis to bolster the trust’s existing permanent workforce based on a balance of need and affordability.

The trust said it is taking steps to reduce its spending on temporary and agency staff where appropriate.