Strikes and the increasing costs of drugs and devices have contributed to a growing deficit at York's hospital trust that could hit £40 million if no action is taken.

York and Scarborough Teaching Hospitals NHS Foundation Trust’s deficit has grown to £11.8 million and on Wednesday, September 27, its board of directors were told that could almost quadruple without intervention.

This has led to the trust’s finance director, Andrew Bertram, to make a plea to NHS England for more money to help deal with its growing financial problems.

 “I’ve made an approach for emergency cash and we are in discussion with NHS England who has, not unexpectedly, asked lots of questions,” Mr Bertram said.

“I expect either recognition that it’s beyond our control to resolve or some compensation from NHS England.”

Warning the board, Mr Bertram added: “If we do nothing, we are heading for a £40 million deficit as an organisation.

“That will not be the position we will be in; I’m really keen to stress that.

York Press: Andrew Bertram. Photo from NHS York website.Andrew Bertram. Photo from NHS York website.

“It is likely that we will bring that £12 million down to £6 million or £7 million by the end of the year.”

The affects of industrial action have lost the trust £1,655,000 in income and there has been £660,000 in additional net costs to ensure adequate and safe staffing levels.

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Agency spending to cover vacancies is at an overspend of £2.6 million.

Furthermore, drugs and devices that were previously contracted on a pass-through basis are now subject to tariffs, which Mr Bertram said “is heading for a £10 million problem for us as an organisation".

He added: “There’s no flexibility.

“These things are hitting us and are hitting us hard.”

The group’s cash plan for 2023/24 is for the cash balance to reduce from £50.3 million at the end of March 2023 to £40.6 million at the end of March 2024, with the planned I&E (income and expenditure) deficit being a key driver in the reduced balance.

Mr Bertram is also asking departments within the trust where money is being “wasted” rather than asking them where they can “save money” in a change of approach to bring the deficit down.