HOSPITAL bosses in Burnley are calling for urgent talks with health authority chiefs after admitting their financial situation is "unsustainable".

Burnley Health Trust plunged deeper into the red last month, despite launching an action plan to tackle spending headaches.

A new report shows the trust was overspent by nearly £690,000 at the end of July - £104,000 more than the figure for the previous month - and is heading for a £400,000 budget deficit by the March 31 year end, even with the action plan in place.

In a report to Wednesday's meeting of the Trust board finance director David Meakin says the hospitals and community care organisation is required to deliver a financial balance, meet waiting list targets and manage emergency pressures on services.

But he warns: "The chances of achieving all three at this point of time are unrealistic."

He adds: "Clearly, the (financial) situation is unsustainable and we must seek urgent discussions with the Health Authority on how we proceed.

"The chief executive has already written to East Lancashire Health Authority outlining the financial prognosis and seeking an early meeting to discuss the way forward."

Mr Meakin said the trust had more than 300 more people than target on the in-patient waiting list and had also been told to slash out-patient waiting of more than 13 weeks from the current 3,635 patients to 1,335 by the financial year end. He says £1million is required to meet waiting list targets, but so far only £500,000 has been agreed with the district health authority and further talks were needed.

The finance chief said that while the Trust was anticipating extra cash to cope with winter pressures on services, there was still a clear message from both NHS Regional Office and the health authority that no funding would be forthcoming.

He said he was drawing up a model of the effects the lack of winter cash would have on trust budgets.

The report showed £354,000 of the £689,000 overspending by directorates came from surgical specialities.

Medical specialities were overspent by £108,000 - "The directorate continues to exert tight controls both over drugs and nurse staffing, however, activity pressures, along with high absence levels have led to limited success in this area."

On mental health, £31,000 overspent, Mr Meakin says: "There would appear to be an unacceptable level of locum expenditure within this directorate and immediate action is required to redress this imbalance."

Mr Meakin sums up: "Clearly directorates have only had a limited period to implement plans, but I must conclude the directorate recovery plans will not be achieved without more concentrated effort."

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