Hospital bosses have been told to look again at their finances as they are “simply unaffordable”.
Calderdale and Huddersfield Foundation Trust (CHFT) has been told to cut even deeper following a letter from regulator Monitor.
The trust, which runs HRI and Calderdale Royal, has spent the past 18 months desperately trying to slash almost £40m from its budget.
But on Monday it received a letter from Monitor saying the levels of savings planned were not enough.
As reported, CHFT is one of the 46 trusts already being investigated after it breached its licence in November last year.
The trust slipped into the red for the first time in a decade and is now predicting a £23m deficit for the end of this year.
Monitor officials and consultants have been working with executives at Trust Headquarters at Huddersfield Royal Infirmary over the past eight months in a bid to improve efficiency while also maintaining high quality care.
More than 120 voluntary redundancies have been made since the start of the year.
At a board meeting last week, chief executive Owen Williams said the Monitor “turnaround project” was proceeding well and plans had been agreed.
But yesterday, director of finance, Keith Griffiths said they were digesting Monitor’s latest diktat, which called for more cuts.
He said: “As all the other trusts, we shall be considering the content of the letter and responding in due course.”
The letter from Monitor chief David Bennett to Mr Williams, seen by the Examiner, says: “As you know, the NHS is facing an almost unprecedented financial challenge this year.
“Current plans are quite simply unaffordable.
“As I have said before, if we are to do the best we can for patients we must leave no stone unturned in our collective efforts to make the money we have go as far as possible.
“We are already reviewing and challenging the plans of the 46 foundation trusts with the biggest deficits.
“However, it is clear that this process will not close the funding gap and so we need all providers – even those planning for a surplus this year - to look again at their plans to see what more can be done.”
Mr Bennett goes on to recommend the hospital only fills “essential staff vacancies” but follows guidelines on safe staffing in a way which was “proportionate and appropriate”.
It is only a year since hospitals were told to increase nurse to patient ratios to increase safety and just a few weeks since NHS England ordered hospitals to cut back on the use of agency staff, often used to plug gaps left by permanent staff.
NHS England will order the CCGs to ease pressure on hospitals by suspending all fines and penalties for not meeting certain treatment targets such as waiting times.
Monitor also called for the trust to resolve its two contract disputes with Greater Huddersfield Clinical Commissioning Group as “quickly as possible”.
Chris Hopson, chief executive of NHS Providers, a support group for hospital trusts, said the letter was “recognition that urgent action is needed if the NHS is to stay within its overall budget this financial year.”
He said: “80% of all English acute hospitals, including a significant number of trusts that have been rated as well led, are projecting a deficit this financial year.
“This level of financial distress is not a problem caused by individual providers or commissioners. It is a symptom of whole system issues and a mismatch between the demands placed on the service and the resources the NHS has been given.”
