A HEALTH regulator has opened an investigation into 'problems' with the finances of a hospital trust.

Monitor will examine the books of Lancashire Teaching Hospitals NHS Foundation Trust, who run Chorley Hospital.

The regulator’s investigation will seek to understand why the trust’s finances have deteriorated and what can be done to fix them.

Since the government’s op down reorganisation of the NHS, Preston and Chorley hospitals have been forced to cut £60m from budgets over the last four years.

Monitor will also examine how well the trust, which provides hospital services to 370,000 people in Preston and Chorley is working with other local NHS bodies to address its problems.

Paul Chandler, Regional Director at Monitor, said: “Patients in Lancashire rely on the trust to provide their local hospital services, and many more people rely on the specialist services the trust provides in the wider region.

"We want to make sure that Lancashire Teaching Hospitals can continue to provide high quality care while balancing its books.

“The trust’s leadership has taken steps to address its problems, but we have launched this investigation to better understand the financial issues and find out what needs to be done with other local partners to fix them.”

Monitor said it would announce the outcome of its investigation, and whether any regulatory action is needed, in due course.

Lindsay Hoyle, Chorley's MP has backed the decision by management at Lancashire Teaching Hospitals Trust to throw open their accounts to Monitor in order to try and secure additional funding for vital services.

Earlier this year NHS England instructed bosses at Chorley and Preston hospital to slash an additional 4.5 per cent from budgets.

Following intensive discussions the Trust concluded that it could only cut 2 per cent, another £9-12m, without endangering safety levels across the two sites.

In the face of overwhelming budget constraints Lancashire Teaching Hospitals has approached Monitor for additional funding, which requires the trust to allow a full assessment of its financial state by the regulator for health serves in England.

Lindsay Hoyle said: “I am calling on Monitor to heed the warnings of Lancashire Teaching Hospitals; we cannot have tens of millions of pounds removed from budgets year on year, and not see an impact on services. Ultimately this could compromise quality of care.

“So far, the trust has tried to mitigate the impact of cuts as much as possible – but quite rightly, they’re now saying ‘we won’t make cuts that endanger safety of patients’.

“We now look to Monitor to come in and look at both Chorley and Preston hospitals and I urge them to provide funding to sure up vital services. We must not cross a very dangerous line where we could see patient safety being put at risk.”

Ahead of meeting Lancashire Teaching Hospital bosses and Monitor Lindsay Hoyle praised the efforts of front line NHS staff and made it clear that no further pressure can be put on them in order to save money.