Sky-high deficit rocks BHR trust
A CATALOGUE of failings have led to the borough's hospital trust handling a record sky-high deficit for the fifth straight year.
A deficit of £22.3million was incurred by Barking, Havering and Redbridge University Hospitals NHS Trust (BHR) in the 12 months to April.
It means since 2005, the health trust has overspent a staggering £117million.
The annual meeting of the health trust held in King George Hospital, Barley Lane, Goodmayes, on Tuesday, heard the deficit is projected to rise to £137million by the end of the 2010/11 financial year.
An independent assessment of the trust's books, carried out by the Audit Commission, hit out at BHR chiefs for failing to put in place a medium-term financial strategy and not making "adequate arrangements to ensure that its spending matched its available resources".
Trust director of finance David Wragg told the meeting "We are making improvements, but we've still got a long way to go.
"We have a massive deficit to deal with and we have work to do to get the organisation functioning effectively."
Targets were put in place to ensure the trust has a zero yearly deficit by 2012 as part of a recovery plan approved by the Strategic Health Authority.
That will come ahead of the trust getting foundation status in 2013 in line with government plans.
Funding from the Department of Health and the Challenge Trust Board, which controls a £300million pot of cash, could also help cut the cash owed.
Trust overspending peaked in 2007/08, when a £35.6million deficit was recorded.
The deficit for the 2008/09 financial year stood at £26.2million.
The Audit Commission report on the trusts's financial health also criticised BHR for not getting value for money and not agreeing a plan to recover its "historic deficit".
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