Debt-free start for health trust?

SCARBOROUGH Hospital could be given a new debt-free start if a merger with York goes ahead as planned in April.

The trust has battled with a historic debt problem for a number of years, with a deficit reaching £20.5 million at its height.

However, it has been confirmed by trust board chairman Sir Michael Carlisle that the figure has been reduced to £12.9 million, mainly through a series of cost improvement measures.

It is now hoped that before Scarborough and York health trusts officially join forces on April 1, the balance sheet debt could be removed altogether by the Department of Health.

Sir Michael said: “The removal of this debt will enable capital investment. We have made some investment in the building in recent months, with difficulty, and we’re expecting £20 million over the next few years in capital investment.”

The message was echoed by chief executive Mike Proctor, who explained that the trust had needed financial support for the last 10 years.

He added that the trust was just about to pay the final instalment of a £7.6 million loan to the Department of Health.

Mr Proctor said: “It is difficult to announce numbers at the moment, but please be assured that the York foundation trust board will not allow the merger to happen unless the money is there to do it.

“I can’t tell you the details, but the debt situation need to be sorted and the Department of Health is supporting us. The question is how much and we’re still working on it.”

Leo Mcgrory, chairman of Scarborough and District Local Involvement Network (LINK), said: “There is every expectation that the debt will be signed off, but it’s not been done yet.”