hospital bosses have been handed more than £20 million in emergency bail-out funding to tackle huge deficits.
Leeds Teaching Hospitals NHS Trust, which runs Leeds General Infirmary and St James’s Hospital, which is facing debts of £42m in 2014-15, is being given an injection of £14m by the NHS Trust Development Authority.
The Mid Yorkshire Hospitals NHS Trust, which runs hospitals in Wakefield, Pontefract and Dewsbury and has been beset by a financial crisis for more than a decade, is being handed £8m to part-cover its expected deficit of £17m.
The authority, which regulates both trusts, said the one-off deficit funding was being directed at hospitals with “particular financial challenges which we consider are exceptional and affect the overall sustainability of the trust”.
The two are among 15 of 98 nationwide receiving “provider deficit funding”.
The regulator has attached conditions to the extra cash. Among the strings are restrictions on senior management pay, although last night the authority would only say it would inform the trusts “in due course” of the details.
The bail-outs come amid a worsening financial crisis in the NHS which is facing rising demand in the face of flat budgets.
Officials from the authority also blame the worsening position on a significant increase in the use of contract and agency staff, and failures to deliver cost-cutting measures.
Managers at both trusts have confirmed they are receiving the additional funding.
Caroline Wood, associate finance director at the Mid Yorkshire trust, said: “The impact of this funding will be to reduce our full year deficit this year from our plan of £17.1m to £9.1m.”