Nottinghamshire hospital trust faces £26m shortfall

King's Mill Hospital
Image caption The Keogh review was extended to include King's Mill Hospital in February

A Nottinghamshire hospital trust placed in special measures in July has admitted it will face a cash shortfall this year.

A report by Sherwood Forest Hospitals Trust said it would start the next financial year with a £26m shortfall.

The trust was one of 11 to be placed in special measures, following concerns over high death rates.

Meanwhile, the GMB union has voted to take industrial action at the hospital in a dispute over over pay.

'Money won't run out'

The trust report said the latest forecasts predicted a shortfall of £26.42m, with a "cash negative" position being reached in February 2014.

However, it added the overall deficit in the first quarter of the year was better than expected.

Paul O'Connor, chief executive at the trust, assured patients and staff that the money "won't run out".

He said the trust had been providing frequent updates to its regulator, the health watchdog Monitor, over the past couple of years.

"We are one of a number of NHS trusts doing this at the moment and in all of the cases the required cash support has been provided in order that all salaries and suppliers can be paid," he said.

In 2012, Monitor said it was "extremely concerned by the very serious issues facing the trust".

The watchdog intervened after the trust struggled to meet repayments on a £320m PFI project.

The trust was also one of 14 investigated in a review by NHS medical director Sir Bruce Keogh.

He criticised staffing levels, poor governance and a "significant" backlog of complaints.

Members of the GMB union who work for the trust have voted to take industrial action later this month and will no longer work overtime.

They said it was because of a second pay cut in recent years.

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