NHS trust chief to tackle crisisfrom Australia

Mike Waites Health Correspondent

A CASH-stricken NHS trust in Yorkshire has came under renewed scrutiny after it emerged its departing finance chief will complete final details of its full-year accounts more than 10,000 miles away in Australia.

Nick Steele will leave North Yorkshire and York Primary Care Trust (PCT) for a new job Down Under in the middle of next month.

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The PCT is facing a deficit of around 8m in the 12 months to the end of March – although latest figures reveal it faces disputes over outstanding bills with five hospitals which could plunge it a further 13m into the red.

Mr Steele’s departure means he will not be on hand to deal with any outstanding discussions over the contracts and will also complete final details on the accounts from his new base in Brisbane.

In a briefing for a meeting today of the PCT in Easingwold, its chairman Kevin McAleese praises Mr Steele for his role in tackling 75m in debts when the organisation was formed in 2006.

He adds: “Nick will be leaving next month but still supporting us in completing the year-end position via the use of electronic communications, though we will have to remember the time difference between Australia and the UK.”

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In a separate report, the PCT warns its projected deficit of 8m in 2009-10 assumes “significant success” in challenging disputed contracts worth 13.4m with NHS trusts including Leeds, Harrogate, York, Mid Yorkshire and South Tees.

“The forecast is a clear breach of the PCTs main financial duty and every possible action must be taken to reduce expenditure in the remaining months,” it adds.

Selby’s Labour MP John Grogan said: “This is a rather unusual arrangement.

“Whilst there are advantages in working from home, working from Australia is a new one on me.

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“I think it is imperative given the financial situation facing the trust, that the outgoing director of finance is asked to complete as much of the work on this year’s accounts before boarding the plane and that a replacement is in place without delay.”

The deteriorating financial position has led regional health chiefs to intervene to put the PCT in “turnaround” where it is given intensive help to deal with its difficulties.

Its problems are not as serious as those facing it when it was founded in 2006 but they come ahead of swingeing curbs in spending expected in future years as the huge increases in NHS expenditure over the last decade come to a halt.

The deficit is being blamed on a number of factors including higher-than-expected spending on hospital treatment, continuing care services and mental healthcare.

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Local NHS managers also complain the area has the lowest level of funding per person in the whole of the region despite the significant extra distances involved in treating a rural population which has more elderly people.

A series of cost-cutting measures have been put in place to tackle the deficit including restricting activity at hospitals in the area, challenging GPs over their spending and work to reduce drug bills.

Last night the PCT said an interim director of finance began work yesterday and would work alongside Mr Steele until he left next month.

Mr Steele had offered to help with the accounts following his departure and work was already under way to appoint a permanent replacement.

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In a statement, he said: “We are continuing to predict a year-end deficit of 8m.

“We expect this deficit to reduce before the end of the year and every possible action is being taken to reduce expenditure in the remaining months whilst maintaining patient safety and quality of services.

"Through negotiations with our acute trusts, we are currently trying to resolve some secondary care contract challenges.

“All parties within the local healthcare economy are working closely together and we continue to anticipate a reduction in our forecasted deficit by the end of the financial year.”