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Seven NHS hospital trusts who have demonstrated that they face serious structural financial issues may receive additional support from the Department of Health if they can demonstrate that they can meet four key tests.

In October, Health Secretary Andrew Lansley announced that the Department of Health would provide ongoing support to a small number of NHS Trusts with historic Private Finance Initiative (PFI) arrangements that were unable to demonstrate the necessary long-term financial viability. To meet the criteria for such support, a shortlist of affected Trusts would need to demonstrate that they had met four key tests:

鈥⒙牷使谔逵齛pp problems they face should be exceptional and beyond those faced by other organisations;

鈥⒙牷使谔逵齛ppy must be able to show that the problems they face are historic and that they have a clear plan to manage their resources in the future;

鈥⒙牷使谔逵齛ppy must show that they are delivering high levels of annual productivity savings;

鈥⒙牷使谔逵齛ppy must deliver clinically viable, high quality services, including delivering low waiting times and other performance measures.

This process was established so that patients and taxpayers could see that additional funding for NHS organisations that face financial issues would be provided in a transparent and open way, where it can clearly be demonstrated that these organisations would otherwise be financially sustainable.

Following further work, seven Trusts who may need financial support have been identified and further work on the detail of each individual case is underway including showing whether or not they can meet the four key tests:

鈥⒙燘arking, Havering and Redbridge NHS Trust
鈥⒙燚artford and Gravesham NHS Trust
鈥⒙燤aidstone and Tunbridge Wells NHS Trust
鈥⒙燦orth Cumbria NHS Trust
鈥⒙燩eterborough and Stamford Hospitals NHS Foundation Trust
鈥⒙燬outh London Healthcare NHS Trust
鈥⒙燬t Helens and Knowsley NHS Trust

Any Trusts that can satisfy the rigorous tests will have access to financial support of up to 拢1.5 billion in total over a period of 25 years. Some of this funding will be available from 2012/13 from within the Department of Health鈥檚 budget.

Alongside this, Trusts must have in place local plans to achieve long-term financial balance, which will require other factors to be addressed, while continuing to deliver the best possible services for NHS patients. 皇冠体育app funding will be provided in a transparent way that represents the best possible value for money for taxpayers.

Health Secretary Andrew Lansley said:

鈥溁使谔逵齛pp NHS is delivering great results for patients but we know that a small number of NHS Trusts with PFI arrangements have historic problems relating to these arrangements that make it very difficult for them to manage financially.鈥�

鈥淭oday鈥檚 announcement is the latest stage in a programme of work we began in 2010 to identify and tackle financial problems at local level in the NHS. In the past, local Trusts have received extra funding on the quiet in order to avoid embarrassment. We have already signalled that we are determined to end these backroom deals by bringing greater transparency and openness to the process.

鈥淲e need to balance the accountability of the NHS at local level to live within its means on one hand, with recognising that there is a legacy of debt for some Trusts with PFI schemes.

鈥淎nd we need to be certain that those NHS Trusts that face historic financial problems are not taking their eye off the most important issue of all - maintaining and improving their frontline patient care.鈥�

Ends

Notes to Editors

Please contact the Department of Health newsdesk for further information on 0207 210 5221.

Andrew Lansley鈥檚 announcement in October can be found in his speech on the .