STRUGGLING NHS bosses in York are facing an end-of-year deficit of £7.35 million due to a "significant deterioration" in finances.
A meeting on Thursday will discuss the financial problems of NHS commissioners in the Vale of York - which mean the organisation expects to finish the year having spent £11.3 million more than intended.
Among other overspends, Vale of York CCG has spent £6.25million more than planned on York Hospital Trust, nearly £2million on out-of-area mental health placements, and overspent £1.54 million on other providers including services offered by a private hospital.
A financial recovery plan is today due to be considered by NHS England, which is overseeing Vale of York CCG's finances as part of a formal intervention.
Tracey Preece, the chief finance officer, said in the report: "The CCG is currently classed as an organisation in turnaround due to the significant deterioration of the financial position... it is required to do everything possible to improve the position in 2015/16 alongside developing sustainable, recurrent recovery plans for 2016/17."
The report is due to be considered by the CCG's governing body tomorrow. It includes the key actions to be implemented such as weekly planning meetings between York Hospital and the CCG and analysis of prescribing overspends.
Last week, it was reported how York Teaching Hospital NHS Foundation Trust is facing an unprecedented £11 million end-of-year debt and staff have been told to put spending on hold until April.
The verdict is the lowest of four possible ratings, and is applied when a CCG is “assessed as failing, or at risk of failing”.
At the time, Dr Mark Hayes, chief clinical officer for Vale of York CCG, said: “There are a series of challenges in the current financial situation in the Vale of York.
“These challenges compound the need for transformation in the way that health and care are provided and why it is important to continue with our plans to deliver care closer to home.
“Following recent discussions with NHS England, we have received formal notification that, as part of NHS England’s categorisation of CCGs who deviate from financial plans, the CCG is now classed as an organisation in turnaround due to the ongoing deterioration of the financial position.
“For the moment, we will be a categorised as ‘not assured’ for finance as part of the CCG assurance framework. This is a standard NHS England procedure."