Optimism from NHS trust for West Suffolk Hospital in Bury St Edmunds despite £26.5m deficit

A hospital trust said it is continuing ‘to make progress’ as it works to improve its updated forecast deficit of £26.5m.

West Suffolk NHS Foundation Trust (WSFT) said it is £2m ahead of its revised saving plans for the year.

In figures submitted to the Suffolk and North East Essex Integrated Care Board (ICB), the trust is ‘now optimistic’ it will exceed its original forecast deficit of £28.5m.

Bosses at WSFT, which runs West Suffolk Hospital, in Bury St Edmunds, are now focussed on sticking to a financial recovery plan (FRP), which includes a planned deficit of £1.3m, per month.

The papers said: “This exit rate for 24/25 is important in determining the start position for the 25/26 plan.”

At the end of last month WSFT had a cash balance of £6.9m compared to a plan of £1.1m.

Outlining its position to the ICB the trust, which also runs Newmarket Community Hospital, said ‘cash continues to be rigorously monitored and managed’ to ensure it has adequate cash reserves to match its expenditure.

In papers, published ahead of an ICB board meeting next week, WSFT said: “To date, the trust has received £13m in revenue (deficit) support and £2.1m of working capital revenue support.

“The cash position remains critical and the trust has put in an application for a further £15.5m of revenue (deficit) support for quarter four.”

The trust has combined the financial efficiencies achieved by its FRP and cost improvement plan.

Progress against all financial efficiencies is reviewed, by the financial recovery group, each week.

Financial efficiency is how well a company uses its financial resources to achieve its goals.

Last year WSFT closed a clinical helpline, and announced it will be ending free staff membership to Abbeycroft Leisure, as it works to cut costs.

Dr Ewen Cameron, chief executive of WSFT, said: “While the Trust’s financial position continues to be very challenging, we have taken rapid, focused and sometimes difficult actions to control our finances and improve our financial position.

“This has required the hard work and contribution of colleagues across the Trust; I thank them for this and do not underestimate the impact of decisions on the ground.

“We are working up an extensive savings plan for 25/26 and beyond to continue addressing our financial challenges.

“We are seeing positive signs of savings through our cost improvement programme and additional measures in place to reduce spend.

Returning to financial sustainability is hard but necessary, and we continue taking considerable steps because we must live within our means.”