Trusts left ‘drowning in debt’ by Treasury-driven scheme

The way that sustainability funding has been distributed risks creating huge imbalances where some NHS trusts become “cash rich” and others are “drowning in debt”, experts have warned.

Analysis by HSJ has revealed the big winners and losers from the £1.8bn “sustainability and transformation fund” in 2016-17. The fund was put in place as part of arrangements agreed between the Treasury at the end of 2015.

Some organisations have received large payments over and above their original allocations, due to exceeding their financial targets, and have been able to earmark the extra funding for capital projects.

Others have missed out on the funding altogether, and will have to draw down additional interest-bearing loans from the Department of Health to keep up payments to staff and suppliers.

Full story in HSJ 2 June 2017