A hospital trust which has overspent by more than �43m in the last three years is to be referred to the Health Secretary. An Audit Commission report criticises plans by West Hertfordshire Hospitals NHS Trust to remedy their plight.
Plans to address budget failures would be unlawful or lead to further losses, the report claims.
Losses are blamed on poor financial control and plans to turn them round by 2010 are said to be "challenging".
'Challenging' task
The hospital trust has hospital sites at Hemel Hempstead, Watford and St Albans but the report also covers the Primary Care Trusts (PCTs) in Dacorum, Hertsmere and Three Rivers.
The report admits that many of the problems faced were the result of the challenges of NHS modernisation and the creation of new organisations from four existing units.
"However, significant duplication has remained. Of particular concern are the apparent weaknesses in the arrangements established by the PCTs to ensure effective financial governance."
The PCTs are committed to further savings over the coming years but the report questions their ability to achieve them.
"The magnitude of the savings required, allied to the risks associated with planned savings already identified, would suggest an extremely challenging task, " the report said.
West Hertfordshire Hospitals NHS Trust welcomed the report and David Law, chief executive, said he was pleased the report had recognised "significant improvements" in certain areas.
"As a trust we are continuing to take a leading role in working with the strategic health authority, local primary care trusts and other providers to improve partnership working and commissioning services," he said.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
