Friday 25 May 2007

Manchester: New debt crisis hits health trust

Mental health services in Manchester have been placed on the government's critical list - reports the Manchester Evening News.

Cash-strapped Manchester Mental Health and Social Care Trust which started the financial year £4.5m in debt, will have to report its financial progress to regional health bosses every fortnight.

It is the second trust in Greater Manchester to officially enter "turnaround" - a Department of Health initiative to tackle debt crisis.

MMHSCT, which has a historic debt of £1.9m and is already predicting it will be £2.5m in the red by March next year, will have to appoint an outside troubleshooter to find ways to cut spending and make savings.

New chief executive Sheila Foley said: "While we are disappointed with the decision, we are determined to use this opportunity to put the Trust into sustainable financial stability.

"We remain committed to delivering the agreed improvements to mental health services across the city."

The turnaround programme was started by the Department of Health 15 months ago.

Turnaround trusts have to produce detailed plans of how they will provide patient care and bring their finances in line.

The city's mental health services are set to undergo radical changes after a public consultation called Change In Mind.

Karen Reissmann, of the MMHSCT staff union's forum and a top member of Unison's executive, said: "Mental health nationally and certainly mental health in Manchester has been under-funded for many years, despite the obvious high need.

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