Search

King George Hospital trust’s finances under investigation after taking £15m emergency loan from the NHS

PUBLISHED: 16:12 03 November 2017 | UPDATED: 16:19 03 November 2017

Goodmayes scenes for wrap. King George Hospital

Goodmayes scenes for wrap. King George Hospital

Archant

Redbridge’s hospital trust is having its finances formally investigated by the NHS after it was forced to take out a £15m bail-out loan.

Barking, Havering and Redbridge University Hospitals Trust (BHRUT), which runs King George Hospital in Barley Lane, Goodmayes, and Queen’s Hospital in Romford, required the emergency funds after racking up a number of bills to non-NHS suppliers that had been outstanding for more than 90 days.

The Recorder understands that some suppliers have even threatened to take the trust to court over the unpaid bills.

An NHS Improvement spokeswoman confirmed the organisation had opened a formal investigation into BHRUT’s finances, and that London-based audit firm Grant Thornton would be leading the independent review of the trust’s cash flow.

She added: “This kind of investigation is a key element of our role as a regulator, and will take into account the work and findings of the review being carried out by Grant Thornton, with whom we will be working closely.

“To avoid any perception of conflict of interest, the work is being led by a team independent of the NHS Improvement London region.”

In board papers published after the trust’s last governance meeting on October 31, a finance report painted a bleak picture.

The report, presented by BHRUT’s acting director of finance and investment, Steve Collins, explored a worst-case scenario where the hospital trust found itself £30.3m in debt if £20m of expected income was disputed by healthcare commissioners.

It read: “The trust’s trading position continues to place extreme pressure on the cash position, with quarterly PFI payment due in early October.

“The trust has requested loan support finance to pay aged creditors.

“The trust is urgently reviewing its financial management and future cash requirements.”

Matthew Hopkins, BHRUT chief executive, said the trust had “had a particular challenge this year”.

He added: “We have recently uncovered a significant short-term cash flow issue within our trust.

“We have taken prompt action to resolve the situation, and have secured a loan from our regulator, NHS Improvement to do this.”

Mr Hopkins went on to stress that the problems had had no impact on patient safety, and that no treatments or operations were affected.

“We are very aware however, of the impact this has had in some circumstances on our local suppliers and partners,” he said.

“We value them greatly. We would like to thank all our suppliers and partners for their continued support and patience, in helping us care for our patients - we couldn’t do our work without them.

“We have already resolved many of the outstanding payments, and will be taking steps to deal with the remainder as soon as possible.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ilford Recorder visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ilford Recorder staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ilford Recorder account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Latest Ilford News Stories

If you’re planning to visit loved ones over the Christmas period, you might want to think twice about using public transport.

Wondering what the weather has in store for us this weekend? Watch our three-minute Met Office video forecast.

This week beginning Tuesday evening (December 12) for eight continuous days, the Jewish world celebrates Chanukah – the festival of lights.

PROMOTED CONTENT

You don’t have to make the trek to the North Pole to get into the Christmas spirit this year.

Newsletter Sign Up

Sign up to receive our regular email newsletter

Most read news

Show Job Lists

Competitions

Oaks Park High School Year 8 student Rhia Gondhia likes to make people feel welcome.

Having a brand new kitchen is something that lots of people want but can only dream of. Sadly keeping up to date and making our living spaces as nice as they can be is a costly and incredibly stressful business. Even a fresh coat of paint makes all the difference but isn’t easy or quick.

Who wouldn’t love the chance to go on a shopping spree. Imagine being able to walk into a shop and choose whatever your heart desires without having to worry about how much it costs.

Digital Edition

cover

Enjoy the
Ilford Recorder
e-edition today

Subscribe

Education and Training

cover

Read the
Education and Training
e-edition today

Read Now