Hospital announces £14million cuts

11:08pm Friday 9th May 2008

Comments (6)   Have your say »

By Camilla Sutcliffe »

HOSPITAL bosses must save another £13.9 million in the next 12 months - but chiefs said they would try to avoid job losses or service cuts.

The savings are needed as part of the East Lancashire Hospitals NHS Trust's five-year-financial recovery plan, which began in 2006 after the Trust was heavily criticised for financial failings.

Over the last two years, redundancies across all hospital departments at both the Royal Blackburn and Burnley General were needed to balance the books No detailed analysis is yet available to show exactly how the money will be saved, but planned budget cuts include: Medical facilities - £4,100,000 Surgical facilities - £3,953,000 Women's and Children's services - £3,220,000 Estates and Facilities - £1,250,000 Council leaders hit out at the further cuts. Leader of Blackburn with Darwen Council Colin Rigby said: "It's a private-finance hospital and they are paying out more than £20 million a year just in paying back private firms at massive interest rates. Those charges are seriously affecting our service provision.

"There would be enough money for the recovery plan and to keep the services as they are if they hadn't signed up to the PFI. It's simple economics."

Burnley Council leader Gordon Birtwistle said money should be no object in healthcare provision.

He said: "I don't agree with the recovery plan at all. They are imploding under the pressure as it is at Blackburn and more budget cuts will make that even worse.

"There are a lot of things the government could cut spending on - nuclear weapons, bringing the troops home from Iraq - but they shouldn't be making hospitals scrimp on money.

Acting chief executive of the hospitals trust Gary Graham said: "Every year, in line with every other Trust in the country, we set a target to deliver improved services whilst working ever more efficiently within the resources we are given through setting Cost Improvement Programmes.

"The programme allows us to compare ourselves with peers in other Trusts and helps us identify and focus on opportunities for improvement in our services.

"Inevitably, improving our services may have an impact on roles and jobs needing to change but, as always, if this were to be the case we would work in partnership with Trade Unions and our staff to ensure that our Cost Improvement Plan allows us to retain the skills and job flexibility needed for improved clinical care. This is a forward moving organisation, but rest assured that we are committed to trying to avoid situations that would result in the loss of services or experienced staff. "