South Tyneside health trust has deficit of £8.3million

South Tyneside NHS Foundation Trust was £8.3million in the red at the end of the last financial year.

Bosses said today that the trust is facing an “unprecedented” demand on its services.

NHS trusts nationally ended the last financial year with a record £2.45billion deficit, prompting a warning that patient care will begin to suffer without rapid action to tackle health service finances.

The deficit was revealed in NHS Improvement’s quarter four financial and performance figures.

South Tyneside NHS Foundation Trust’s chief operating officer Michelle Arrowsmith said: “South Tyneside, along with trusts up and down the country, is experiencing a demand on services which is unprecedented in the history of the NHS.

“We are constantly looking at new ways of working and of designing services which maintain the highest standards of patient care whilst delivering efficiency savings.”

Jim Mackey, chief executive of NHS Improvement, said: “Today’s figures demonstrate that through programmes such as the Financial Improvement Programme and the measures to reduce spending on agency staff, we are starting to help providers make real progress.

“When we consider where we were six months ago, NHS providers have done a great job in reducing the planned deficit.

“The key now is for us all to work together to make the necessary improvements in 2016/17, to reduce any variations in the quality of care for patients, and to bring the NHS provider sector back into financial balance.”

But NHS Providers chief executive Chris Hopson said: “Today’s report reveals how the combination of increasing demand and the longest and deepest financial squeeze in NHS history is maxing out the health service.

“At the same time as treating the highest ever number of patients, NHS trusts are £2.4billion in the red, with 80% of providers in deficit.”