A York Trust responsible for running the city's hospital will run out of cash in October, according to its chief executive.

In an e-mail sent to York Teaching Hospital NHS Foundation Trust's executive board and senior managers, and seen by The Press, Patrick Crowley explains the coffers will be dry in a matter of weeks.

He writes: "For the first time in the trust's long history we will run out of cash and will have to enter the Foundation Trust Distressed Cash regime."

Mr Crowley tells staff the trust has a deficit of £13.8 million and it will have to borrow money to make sure it can operate.

This will see the trust incur interest on the re-payments and further increase its costs and loans.

Sian Balsom, a manager at Healthwatch York, said the people of York need urgent guarantees that patient safety and quality of care will not be compromised by the Trust's funding ordeal.

She told The Press: "We have previously raised concerns about the financial position of our local NHS. This latest development highlights the seriousness of the challenges we are facing.

"We urge NHS England and NHS Improvement to consider how they can invest in early intervention and prevention services to reduce pressure on our hospitals and support us in transforming our communities and the health and care system.

"York needs its fair share of funding to make this possible."

The immediate impact will see the trust placed under significant financial scrutiny by regulators.

However, Mr Crowley outlines in the e-mail that a financial recovery plan is being put in place.

He has urged senior staff to put the trust's recovery at the "top of their agenda and your personal objectives for the coming year" to help negotiate the funding crisis.

Mr Crowley adds: "Managing our resources as effectively as possible is vital to security and stability of the clinical care we offer as well as allowing ourselves the choice to continue to invest in the services we have all worked so hard to develop."

It's is no secret the NHS in York is struggling for money.

The Vale of York Clinical Commissioning Group (CCG), which covers an area including York, Selby, Tadcaster, Easingwold and parts of East Yorkshire including Pocklington, is one of 14 areas to be placed in the capped expenditure process because of its deficit and it is expected millions of pounds will have to be saved.

The CCG finished the 2016/17 year with a deficit of £23.8 million. Next year’s deficit is predicted to be £44.1 million and £53.9 million by 2018/19.

Andrew Bertram, finance director, York Teaching Hospital NHS Foundation Trust said: "Across both the local and national health system there are significant financial pressures and the trust is not alone in needing to tackle a deteriorating financial position, whilst ensuring the continuation of safe and effective healthcare services to our patients.

“Several years of demanding efficiency targets coupled with increasing costs, for example with agency and locum staff, has made the delivery of our plans all the more challenging.

“We are working closely with our regulator, and other trusts that are experiencing similar difficulties, to draw up financial recovery plans to improve the local financial position.

“There will be some difficult decisions to make but managing our resources as effectively as possible remains our priority to ensure the safety and stability of the clinical care we offer to our patients.

“Staff, or suppliers of services to the trust, should not be concerned about the ability of the trust to meet its financial liabilities."