East Lancs health chiefs in £4million cash battle (From Lancashire Telegraph)

East Lancs health chiefs in £4million cash battle

10:10am Thursday 29th July 2010 in

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TWO cash-strapped East Lancashire health trusts will battle it out today over who is responsible for a £4million debt.

NHS East Lancashire and East Lancashire Hospitals NHS Trust are locked in a dispute over who is responsible for paying for services.

Both trusts said that because the matter was in its final stages ‘it would be inappropriate to comment on the details of the discussions at this time’ or confirm what services the argument concerned.

NHS East Lancashire arranges health care and commissions services in Burnley, Hyndburn, Pendle, Ribble Valley and Rossendale, while East Lancashire Hospitals NHS Trust runs services at Blackburn, Burnley, Pendle and Rossendale's hospitals, Now the strategic health authority, NHS North West, will settle the dispute over the multi-million-pound sum.

Chief executives or nominated executive directors from the two NHS trusts will go to NHS North West's Manchester HQ to plead their case to a mediator, who will make a final decision within 10 days.

East Lancashire Hospitals NHS Trust has already been told it must save £50million through cuts over the next three years, and plans to save £8.7million this financial year.

Chris Dixon, finance director for NHS East Lancashire, said earlier this year that there could be ‘no sacred cows’ when trying to slash £46million.

In a report to NHS East Lancashire’s trust board, he said: “If the outcome or arbitration is in favour of East Lancashire Hospitals Trust, this would worsen the PCT’s position by £4m.”

The adjudication panel will also determine the proportion of costs to be paid by each party.

A joint statement released by Jonathan Wood, the hospital trust’s finance director, and Mr Dixon, said: “Primary care trusts buy a range of clinical services from a variety of organisations.

“From time to time there is disagreement on how to deal with some of the contractual complexities.

“When this arises the affected organisations seek the support of an independent process to help reach agreement.”