Trust welcomes financial review
02 June 2015
Southend University Hospital NHS Foundation Trust has pledged to reduce its financial deficit whilst continuing to provide high quality care to local people.
Monitor, the NHS foundation trust regulator, has announced plans
to review the trust's finances and follows Southend's own
commitment to transforming the way it delivers services to ensure
both quality and value for money.
The move comes after the trust recorded a planned deficit in the
previous financial year of £9 million and is again forecasting a
planned deficit in this financial year.
Alan Tobias OBE, chairman said: "The overspend is a result
of vital investment in services and more staff to ensure high
standards of patient care as well as the rise in attendances the
hospital is continuing to see.
"Having a planned deficit has seen our continuity of service
risk rating (CoSRR) drop from 2 to 1, and means Monitor, the health
regulator, is planning to carry out a review of our finances.
"The review is an automatic requirement of its role in respect
of any NHS Foundation Trust which is forecasting deficit and
Monitor rightly needs to ensure our future plans are financially
"We welcome this review and we will take this opportunity to
clearly demonstrate to Monitor - as well as our patients and
stakeholders - our future financial plans are both robust and
As part of its transformation plans, which aim to modernise and
redevelop services over the next five years at Southend University
Hospital, the trust is committed to returning to a surplus within
Sue Hardy, chief executive, said: "Over the past few years our
staff have demonstrated great commitment to working more
efficiently and effectively, and together we have managed to
deliver considerable costs savings whilst maintaining services and
"We have rightly taken a deliberate decision to prioritise the
quality and safety of patient care over financial performance in
our business planning, for example, the necessary use of agency
staff - at an increased cost - to fill vacant nursing positions
while permanent staff were recruited.
"But we have not been complacent about overspending and although
the high cost of agency staff has been a major contribution, we
have been praised for how we have tackled this in recent
"We have seen demand on Southend University Hospital's services
increase over the past two to three years, including increasing
pressure on our emergency department year round and acute demands
over the winter period.
"But we remain fully committed to continuing to work with our
local health and social care partners to secure the highest
standards of care for our communities, but which also offer the
best value for money, as demand continues to grow."