£70 million of hospital debt wiped out in Doncaster

Doncaster & Bassetlaw Teaching Hospital NHS Foundation Trust has been allocated its share of the £13.4 billion package designed to be a major financial reset for NHS providers.

The package, which came into force on April 1, will provide much-needed financial support during the pandemic and also includes new ways to borrow money moving forward.

The Doncaster & Bassetlaw trust's share of the funding came to £70,920,000, it has been revealed.

Health Secretary Matt Hancock said the change will mean hospitals will get all the necessary funding to carry out their emergency response, despite many hospitals cancelling or limiting their usual services such as elective surgery or walk-in clinics due to the virus.

More than 100 hospital trusts have an average of £100m revenue debt each, with the two trusts with the highest debts reaching a combined total of over £1 billion.

Barnsley and Rotherham hospital trusts had £67m and £57m pounds worth of debt written off. The data did not include Sheffield hospitals.

While many NHS trusts manage strong finances, under the existing rules, some took out loans to plug financial gaps in their day-to-day or capital budgets.

Under the new rules set out in a letter to all NHS trusts, should hospitals need extra cash this will be given with equity, rather than needing to borrow from the government and repay a loan.

Mr Hancock said: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.

"The £13.4bn debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.

Sir Simon Stevens, NHS chief executive, said: “We’ve advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position - not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan.”

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