Cash 'challenge' looms for heath care (From Basildon Recorder)

Cash 'challenge' looms for heath care

1:12pm Friday 1st December 2006

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ESSENTIAL medical services look to be axed as the Mid Essex Primary Care Trust tackles its £24.5 million debt.

The healthcare organisation has announced it is to bring in accountancy firm KPMG to address its financial crisis.

Last month the trust admitted it had inherited debts of £16.5 million when it was formed from the Chelmsford, Maldon and South Chelmsford and Witham, Braintree and Halstead Care Trusts in October.

However, a new financial report has revealed the trust is expected to be £24.5m in the red at the end of the financial year.

Among other things, the trust is blaming the increase on the costs of redundancy payouts during its restructuring process and recent changes in dental treatment.

The external auditors KPMG, who said the trust is currently increasing its debts by £183,000 per month, will be looking at cutting and merging services in order to bring the deficit down to the agreed control total before the end of March 2007.

The trust and KPMG have not stated which services will be cut but have suggested Mental Health services will be under the spotlight.

Paul Bryson, of KPMG, said: "We will work with the PCT management to deliver a robust turn around plan to this board before December 18.

"This is about building a sustainable financial position for the PCT in the months ahead.

"Time is tight and it is going to be challenging."

Sheila Bremner, chief executive of the Mid Essex PCT, said: "We must do absolutely everything we possibly can to curtail spending in the near future.

"It is likely that there will be a number of significant and difficult decisions to be taken by the board."

Adrian Marr, interim director of finance and performance at the Mid Essex PCT, said he would bring detailed proposals of an action plan to the next board meeting in December.

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