Health written question – answered at on 23 March 2009.
To ask the Secretary of State for Health whether any arrangements are in place to assist trusts with budget deficits to bring forward capital investment proposals.
holding answer
There were 17 NHS trusts designated financially challenged in 2006-07 (financially challenged trusts (FCTs)). Long-term financial recovery plans were drawn up for these NHS trusts with the aim of returning them to financial balance while maintaining and improving services to patients. 10 of these trusts have agreed a realistic profile for surpluses going forward and repayment of their historic debt within five years and were no longer therefore designated as FCTs at the beginning of the 2008-09 financial year. One of these trusts was Royal Cornwall hospitals NHS trust.
Capital investment schemes can form part of the recovery plan at FCTs as they can deliver cost efficiency savings at the same time as improvements in patient care. In exceptional circumstances, where a trust urgently requires a level of investment that it cannot afford from its depreciation or from affordable borrowing from the Department, it can receive an exceptional allocation of capital from the Department (referred to as exceptional Public Dividend Capital (PDC)).
At Royal Cornwall hospitals NHS the Department has recently agreed to fund two capital schemes from exceptional Public Dividend Capital: new operating theatres at St. Michael's hospital (total £5.8 million); and £3.8 million to create a 'central hub' for sexual health services on the Royal Cornwall hospital site.
Yes1 person thinks so
No0 people think not
Would you like to ask a question like this yourself? Use our Freedom of Information site.