Multimillion pound injection for hospital trust will protect essential services

Monitor has agreed to increase the amount of money paid for six essential services at University Hospital Morecambe Bay NHS Foundation Trust (UHMBT) which looks after hospitals in Barrow, Kendal and Lancaster.

It is the first time the health sector regulator has used its statutory powers to change the national prices paid to a trust by local commissioners.

The decision reflects the increased costs associated with this trust running health services across multiple sites in rural locations.

The regulator’s decision follows a successful application by the trust for a local modification to the National Tariff, which sets out what trusts are paid for the services they provide.

The exact value of the subsidy will depend on the number of patients using the services covered by the changes.

It is estimated the trust could receive between £20-25 million, reducing the likelihood that it will need further funding from the Department of Health.

The services affected are: • Accident and Emergency; • General surgery; • Trauma and orthopaedics; • Paediatrics; • Women’s health; and • Non-elective medical specialities.

Dr David Bennett, chief executive at Monitor, said: “It is the first time we have used our powers in this way and the new deal will help the trust continue to provide a range of essential services for patients including A&E and surgery.

“There are finite funds available for the NHS and this adjustment will help to share the burden more fairly across the local health economy. However, commissioners and providers need to do more to solve all the financial challenges in the local area.”

Aaron Cummins, UHMBT director of finance and deputy chief executive welcomed the announcement.

"We particularly welcome the recognition from Monitor that we face a unique challenge in this area - providing healthcare across five sites to a population size which often, in more urban areas, is served by fewer hospitals,” he added.