Cornwall's hospitals held in debt

12.00.00am BST (GMT +0100) Thu 7th Jun 2007

Royal Cornwall Hospital Trust is struggling with its debt

Cornwall's hospitals are still struggling with deficit while other trusts nationwide run at surplus because the Government penalises them financially, according to the five Cornish Liberal Democrat MPs in the wake of new financial figures released today.

The Royal Cornwall Hospitals Trust (RCHT) produced a £36.5 million deficit for the year 2006/7, despite the NHS making a £510 million surplus nationwide.

However the Trust's income had already been reduced by £15.6 million because of the Department of Health's Resource Accounting and Budgetary rules which deduct the deficit from the previous year from the Trust's income. If it had not had to repay previous years' debts, the RCHT's deficit would have been just £17.5 million, compared to a comparable deficit of £27 million for 2005/6.

After a debate with Health Minister Andy Burnham MP on 15th May 2007, West Cornwall and Isles of Scilly MP Andrew George wrote to the Minister to seek clarity on the accounting system used by the Department which has put Cornwall at an even greater disadvantage.

Mr George said: "Cornwall is being kicked while it's down. The Royal Cornwall Hospitals Trust has done well to bring its budget in relative balance over the year, though it appears to have suffered from not having the same help from the Department of Health as all other "turnaround" Trusts.

"Given this disadvantage, the RCHT should be commended for eating into its debt. If the Government could match the RCHT's efforts with a fairer funding formula then steps could be made to drag the RCHT into the black.

"The main thing is to see Cornish patients being given the same access to hospital services which other parts of the country take for granted."

Julia Goldsworthy MP for Falmouth and Camborne added: "Cornwall continues to be hit by an unfair funding system, and the Government is proving slow in rectifying the problem. Staff at the RCHT are working very hard to ensure patients get treated properly and it is frustrating when that is undermined by unfair funding."