MP welcomes decision to write-off nearly £60m of Warrington Hospital’s debt

WARRINGTON Hospital will benefit from a near £60m debt write-off as part of the government’s announcement to scrap £13.4 billion of NHS debt across England.
The decision has been welcomed by Warrington South MP Andy Carter, who said:“I am delighted that Warrington NHS Foundation Trust will have £57,798,000 worth of debt written off as part of the government’s announcement to reset NHS finances.
“This will help put NHS hospitals, mental health and community services across Warrington South in a stronger position not only to deal with coronavirus in the short term, but on a stable footing in the long term as well.
“NHS workers and social care staff are doing absolutely magnificent work across the town, and I’m keeping a close dialogue with the hospital to make sure they have all the support they need.
“The government is committed to doing whatever it takes to tackle coronavirus – and this announcement will give the NHS the financial certainty it needs to respond to the pandemic and help save lives.”
Health Secretary Matt Hancock said:“As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.
“This £13.4 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.
“I remain committed to providing the NHS with whatever it needs to tackle coronavirus, and the changes to the funding model will give the NHS immediate financial certainty to plan and deliver their emergency response.”
Warrington Hospital’s Chairman Steve McQuirk, welcomed the news but warned that the hospital would still face deficit challenges in the future due to under funding.
“He said: “We welcome the Governmenet’s decision to write off the historic debts of Trusts like ours and the decision to remove any cost imporvement programmes while we deal with the coronavirus crisis.
“But due to being under-funded which created the historic debt we will stay face deficit challenges which the government need to address moving forward.”
Meanwhile Mr Carter says the Government’s debt write-off will rid more than a hundred NHS hospitals of historic debt, freeing them up to invest in maintaining vital services and longer-term infrastructure improvements. This announcement also comes alongside a new NHS funding model to make sure the NHS has the necessary funding and support to respond to the coronavirus pandemic.
The changes will provide much needed financial support during this unprecedented viral pandemic, as well as laying secure foundations for the longer-term commitments set out last year to support the NHS to become more financially sustainable.
This is part of a package of major reforms to the NHS financial system, designed in a collaboration between the Department of Health and Social Care and NHS England, which will begin from the start of the new financial year.
Trusts across the North West will see a total of £1,576,501 of debt written off thanks to this move.
This package is launched in combination with a simpler internal payment system to help NHS trusts in dealing with the coronavirus response, which was agreed with NHS England last week.
This significant 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.
The Government continues to support and protect the NHS throughout the coronavirus outbreak, by:
· Ensuring the NHS has any extra resources it needs to tackle the virus, including access to a £5 billion Covid-19 Response Fund.
· Increasing the capacity of the NHS, with new, temporary NHS Nightingale Hospitals opening in London, Birmingham, Manchester, Bristol and Harrogate.
· Providing free carparking for NHS workers at hospitals.
· Bringing recently retired doctors and nurses back into the NHS to help bolster our fight against coronavirus.