Overspend threatens hospital's status

The Trust runs Torbay Hospital

A Devon healthcare trust says it has overspent by almost £2.5m already this financial year.

And South Devon Healthcare NHS Trust, which runs Torbay Hospital, is warning the figure could rise by April.

The Trust's director of finance and information says it could have serious implications for the hospital's star rating and plans for a new hospital development.

In his report on Tuesday John Coatham will tell the board that overspending could be as much as £3.5m by the end of the financial year.

That is despite the introduction of measures including a vacancy and agency freeze and cutting down on conferences, travel and non-essential expenditure.

The fact that the overspend is considerably less than the £5m announced by Plymouth Hospitals NHS Trust in November will come as little comfort to the Board.

In South Devon they could lose their three-star status and may have to reconsider major redevelopment plans.