£3.4m loan for trust shortfall (From Gazette & Herald)

£3.4m loan for trust shortfall

A LOAN of £3.4m has been taken out by Scarborough NHS Trust which covers a large part of North Yorkshire including Ryedale, because of a serious cash shortfall.

Director of finance, Bernard Flynn, said that despite making huge savings, the trust had still overspent by £3.4m at the end of the last financial year in March.

A three-year plan has now been agreed by the trust, with the aim of creating a break-even situation.

"The three-year plan has to be realistic and achievable. It will be challenging and difficult but we feel it is achievable," said Mr Flynn.

"We cannot keep borrowing more money. Unless we address some of the underlying financial issues, the £3.4m will grow this year and in future years."

Mr Flynn added: "We are looking to make as cost effective and efficient service as we can through using new technology and techniques."

Updated: 12:44 Wednesday, May 21, 2003