New East Lancashire hospitals chief 's £14m 'headache'

8:48pm Sunday 13th April 2008

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By Camilla Sutcliffe »

THE health trust run by East Lancashire's new hospitals chief faces £14million worth of savings to break even, it has emerged.

But Marie Burnham defended her record and blamed the problems on difficulties she inherited at the North Cumbria Acute NHS Trust.

Critics said the news was cause for concern but pledged to give Miss Burnham a chance to prove herself at the East Lancashire Hospitals NHS Trust.

Miss Burnham will take the helm at the Royal Blackburn and Burnley General hospitals in July, replacing Jo Cubbon who left this month to lead Somerset and Taunton NHS Trust.

In March 2007, four years into Miss Burnh-am's leadership, the Carlisle trust was forced to take a £12million emergency loan from the Department of Health, designed to help it ensure a balanced budget over the five-year period.

But by September that target still had not been reached, and the trust was reported to the government by the Audit Commission. External auditors also raised concerns over the trust's management of sickness absences, financial risks, and performance monitoring.

In the next year, the trust must save at least £14.2million to achieve financial stability, with the entire board facing the sack if targets are not met.

Miss Burnham said: "The year before I joined, North Cumbria was the worst-performing trust in the country. I replaced the entire trust board and after five years building it up it is in the top quarter in the country.

"The PCT has decided to take over our community roles in North Cumbria, and as a result of that we have lost the £14.2million funding for this year, but we have already secured £7million of those savings. My trust has also dealt with an enormous equal pay deal, and managed it very well. And I'm very proud to say that we have just received approval from the Privy Council to achieve university hospital status."

Union leader Christine Wharrier, spokesman for Unison North, said: "Marie is a very dynamic chief executive and she has all the right ideas. But so often you don't see these things materialising, "I don't know whether it's her personally or her management team, but things have gone wrong.

"We haven't had stability, which was what we needed, and all the changes have meant more and more expense. For staff, it feels like we're doing even worse financially than when she took over."

Chairman of Blackburn with Darwen Council's health scrutiny committee Roy Davies said: "Although I didn't agree with everything Jo Cubbon did, she did manage to get the finances in shape and keep them tight, and we need to be reassured this will not go to waste.

East Lancashire Hospitals NHS Trust board chairman Alan Green said: "I am confident Marie Burnham will continue the excellent work of Jo in challenging and holding the organisation to account on behalf of the population."