South London health trust going bust

At the start of the financial year, South London Healthcare, the merger of three hospital trusts, was positioned with a £69m debt.

The trust has been warned by the health secretary that an administrator could be brought in within weeks and that the trust could be voided along with some services being closed.

Another 21 confirmed NHS trusts are struggling in financial difficulty, as it was confirmed by the Department of Health.

The trust incorporated the Princess Royal University Hospital in Orpington, Queen Mary’s Hospital in Sidcup and the Queen Elizabeth Hospital in Woolwich in 2009.

The three hospitals then became one organization as they inherited a large debt due to the private finance initiative (PFI) that had been used in Woolwich and Orpington for the buildings.

Health Secretary Andrew Lansley said that Ministers are planning a possible rescue deal for the trust, which would involve the taxpayer taking the responsibility for the £2.5bn PFI contract that the trust signed up to, for the two new hospitals.

Apart from struggling financially, the trust is also known to have some of the longest waiting times for operations.

BGH/MOL/HE

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