New Pinderfields Hospital - the true cost!

I was at a meeting two weeks ago where our Practice Based Commissioning Consortia had invited Julia Squires, the Chief Executive of Mid Yorks Hospital Trusts to discuss various things. One of the things that cropped up was the extra cost of the new Pinderfields and Pontefract hospitals and how the local health community is going to pay for it. I am not sure whether what was discussed was confidential or not so have not blogged about it until now, but in Fridays Wakefield Express there were full details about their financial difficulties - so I think I can now comment. To read the Wakefield Express story click here.

The Mid Yorks Trust has a budget of about £400 million per year, the new hospitals in Wakefield and Pinderfields will cost an extra £30 million per year and inorder to fund this the Trust has to make savings. The Trust has planned to make nearly £50 million of savings over the next two years. This year Mid Yorks Trust have asked Wakefield PCT for an extra £12 million - £8 million of this is because they won't get the efficiency savings from the new hospitals until the latter part of this year when the hospitals are all operational and £4 million is to pay for redundancies at Mid Yorks.

The redundancies is the real news. Julia Squires said that each redundancy cost £40,000 so that means about 100 people at Mid Yorks will be made redundant. Now that is news.

Of course it just confirms that you don't get shiny new hospitals for nothing and that their is no such thing as a free lunch!


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