The Health watchdog Monitor has reached an agreement to save the cash strapped Peterborough and Stamford Hospitals NHS Foundation Trust.
It means that under the plan all the hospitals run by the debt ridden organisation will remain open.
At the moment the Department of Health provides the trust with forty million pounds a year to help it balance the books.
Monitor say half of that money is needed because the trust is inefficient in some areas and to pay the private finance scheme under taken by previous management to build Peterborough City Hospital.
Under the five year recovery plan drawn up by Monitor the trust will be expected to cut costs in a number of ways including
- Undertaking a programme of cost efficiencies to help the trust cut their debts by ten million pounds a year
- Inviting bids to make better use of their under-utilised property develop new services and generate extra income
- Using a steering group to align business activities
- Seeking financial support from the government to help fund remaining debts
Dr David Bennett the chair of Monitor says they are confident the trust board will make the proposals work