NHS Kernow ordered to deal with financial problems

image captionNHS Kernow has a £700m budget to buy health services on behalf of patients

The organisation that commissions health services in Cornwall has been ordered to deal with its financial problems by NHS bosses.

NHS Kernow has been placed under legal directions by NHS England to produce a recovery plan as it is heading for a year-end deficit of £14m.

It had previously had forecast a surplus of £500,000.

NHS Kernow said it had a good financial track record but faced "a number" of pressures.

New director

Clinical commissioning group NHS Kernow, which has a budget of £700m for Cornwall and the Scilly Isles, buys health services on behalf of patients. It can spend money on NHS or private providers.

It is being ordered to produce a "credible" financial recovery plan, showing how it will operate within its annual budget.

It will also have to provide a detailed explanation setting out why the deficit had occurred, and is to have a so-called "turnaround director" appointed.

NHS Kernow said its situation worsened recently due to a "number of financial pressures - particularly an overspend on individual packages of care for patients with complex health needs".

NHS England said it had been working "for some time" with Kernow CCG to help strengthen its performance, "given longstanding issues in the local healthcare economy".

It added that the directions formalised that work, with the aim of ensuring that the "financial deficit could be recovered" to create long-term sustainability.

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