The NHS Trust that runs York and Scarborough hospitals is facing an ‘unprecedented’ financial situation.
Bosses at the York and Scarborough Teaching Hospitals NHS Foundation Trust said that for “the first time” the organisation has been unable to agree its annual plan with NHS England “this far into the financial year”.
The trust, which runs York, Scarborough, Malton and Bridlington hospitals, is undertaking an efficiency programme with a target of £62 million.
Health leaders said the trust is set to spend about £900 million in 2026/27, but despite the savings plan, will finish the year with a £22 million deficit.
Clare Smith, chief executive of the trust, said the organisation was continuing to engage with national and regional NHS England colleagues regarding the financial plan.
Earlier this year, the trust’s leadership participated in a national plan escalation meeting in London with Sir Jim Mackey, the CEO of NHS England and Dr Penny Dash, the chair of NHS England, along with other senior NHS colleagues to discuss its financial situation.
“The expectation remains that we deliver the plan approved by the board of directors while these discussions continue, and we await formal confirmation of the final planning position,” Ms Smith noted.
As part of updated rules, all ICBs and NHS trusts are required to maintain a breakeven financial position as an organisation in each financial year.
The absence of agreement on the annual plan “reflects the level of complexity and challenge the organisation is working through,” Ms Smith said.
She added: “We also await confirmation of whether any further action will be required this year, recognising the need to deliver a balanced financial position by 2028/29.
“Colleagues across the organisation are already making a significant contribution through our Waste Reduction and Productivity (WRAP) programme, and I remain grateful for their continued efforts.”
The chief executive called on colleagues to “build on this work and maintain a strong focus on making the best possible use of the resources available to us”.
As part of the plan to prevent the trust falling further behind its financial trajectory, health bosses have “further strengthened financial controls, including a more rigorous approach to vacancy management”.
However, a report prepared for an upcoming board meeting highlighted that “recruitment decisions will continue to balance the need to maintain safe, high-quality services with the requirement to live within the resources available to the trust”.
The York and Scarborough NHS Trust is also receiving support from NHS England’s Challenged Provider Programme, which has identified “two colleagues to join [the trust] for a period of time to support us in achieving our financial commitments”.
