The NHS in Wolverhampton faces one of its most ‘challenging years’ yet as it attempts to save £25 million while protecting patient care.

The warning comes as the health trust that runs New Cross, West Park and Cannock Chase hospitals celebrates the 70th anniversary of the founding of the NHS.

As the Royal Wolverhampton NHS Trust held a birthday party for the service this week, behind the scenes finance officers were striving to meet their target for financial savings.

The trust is one of the largest acute and community providers in the West Midlands having more than 800 beds on its New Cross site including intensive care beds and neonatal intensive care cots.

New Cross Hospital in Wolverhampton
New Cross Hospital in Wolverhampton

It has a Cost Improvement Programme (CIP) target this year of £25 million. CIP targets are intended to reduce overall costs but without impacting on patient care.

But in the report to the board members, finance officers admitted the trust is falling short of its financial marks.

In the first two months of this financial year the trust was only able to save £800,000 against a target of £1.77 million.

In May, it found savings of £490,000 against an expected £930,000 - 52 percent of the amount it was supposed to meet.

Officers also reported that at the end of May the trust had a cash balance of £10.6 million, £1.9 million more than predicted.

Despite this, writing in the report, finance officers warned: “This financial year is expected to one of the most challenging years the trust has experienced.”

Last month the Care Quality Commission rated the trust as ‘good.’ Noting it was well led, they reported ‘The leaders had the skills, knowledge, experience and capacity to lead the trust and provide high quality sustainable care. The executive team were well established and appropriately experienced.’

A spokesperson for the Royal Wolverhampton NHS Trust said: “The trust is working hard to achieve the ambitious CIP target of £25 million during 2018/19.

"The plan is phased over the year and this phasing is an estimate of the pace and speed with which savings will be identified and achieved.

"The trust will also identify one-off savings which is normal for a trust of this size.

"At this point in time the trust continues to identify additional savings ideas and currently plans to achieve its financial targets.”