Energy costs mainly blamed for likely deficit at main hospital trust serving Hartlepool

North Tees and Hartlepool NHS Foundation Trust is also aiming to make £9.3m in efficiency savings – 2.5% of its overall turnover – which it said would be a significant challenge to deliver.

The trust’s planning takes into account the transition towards Integrated Care Systems and Integrated Care Boards coming into being next month and changes in the funding framework within which hospital trusts operate.

The new boards will determine how regional funding allocations for the NHS are spent and are being tasked with reducing the overall deficit in overall NHS finances.

In a recent report the trust said there was a “key financial duty” to break-even across the new North East and North Cumbria Integrated Care Board area.

The report said: “The impact of inflation – specifically, utility costs – has had a significant impact on the trust’s financial plan and is the key driver of a deficit plan.

“The trust is planning for a deficit position in 2022-23 with the main drivers being utility spend and inflation costs/cost of living increases.

“Good control and mitigation in operational financial management and good grip in corporate financial management is therefore essential.”

The trust has received £7.3m from an elective recovery fund aimed at reducing patient waiting backlogs.

North Tees and Hartlepool’s operating income will amount to £365.4m in 2022/23, while total operating expenditure is planned to come in at £364.6m, a figure which includes pay expenditure totalling £248.1m.

With other adjustments, this would result in a deficit of £1.37m.