The NHS Trust for the Isle of Wight is at risk of being placed into Financial Special Measures if it fails to control it’s spending deficit, the Solent Times can reveal.

The trust is currently in Quality Special Measures, and will likely be placed into FSM if the trust is unable to put forward a sustainable plan and convince the regulator, NSHI, that performance is improving.

Latest figures show that as of August the deficit currently stands at £10m – £1.32m behind the approved plan.

The trust is predicting a £23m deficit for 2017/2018, much higher than the original £18.8m earmarked.

An important factor behind the rise is the hiring of external staff. Spending on temporary agency staff has doubled to £1m since April 2017, which far exceeds the ceiling placed to try and control overspending.

A new ‘Financial Recovery Plan’ was presented at a Trust Board meeting on Wednesday 4th October. It sets out a plan of ‘immediate intervention to stabilize the position and recover to a break-even position’.

Deputy Chief Executive, Frank Sims, released the following statement:

We’re really taking all of the improvements in the organization seriously – we’re already seeing improvements to the quality of patient care and reductions in waiting times. But we do have a duty to live within our financial means. The financial recovery plan does that in a  sensible way – it looks to recruit permanent staff – rather than reliance on expensive agency and interim appointments. I think we’ve got a plan that takes us to stability this year and then take us forward into longer term sustainability.

Originally posted 2017-10-04 18:35:32.