Hospital trust merger: MP wants deficit 'wiped out'

The Sherwood trust was placed in special measures by the Care Quality Commission in 2013 amid concerns about death rates

An MP has warned against saddling a proposed new NHS hospital trust, that will be one of the largest in the UK, with heavy debts.

Sherwood Forest Trust, which was placed in special measures for a second time in October last year, is to be taken over by Nottingham's hospital trust.

MP Chris Leslie, former Labour shadow chancellor, said the government should write off the merged trust's deficit.

The combined deficit of the two trusts was about £100m in 2015.

The merger will create one of the biggest trusts in the country outside of London with 18,500 employees serving a population of almost 3 million across Nottinghamshire and other parts of the East Midlands.

More on stories for Nottingham and Nottinghamshire

The Sherwood trust has a £2.5bn debt from a PFI deal that runs to 2034.

MP for Nottingham East, Mr Leslie said: "I think we need ministers to make sure we start with a clean slate - it would be far better to start as we mean to go on - 'in balance'."

The proposed new trust will help "stabilise" the finances of the hospitals, according to Nottingham hospital chief executive Peter Homa (left) and Sherwood interim boss Peter Herring (right)

The Nottingham trust will now go through a formal takeover process for Kings Mill, Newark and Mansfield community hospitals.

Peter Homa, chief executive of Nottingham University Hospitals NHS Trust, said: "We've been assured financial responsibility will be dealt with - Nottingham won't be taking on that debt."

He said the trust is in the process of discussing what will happen with NHS colleagues and the Department of Health.

'Poor job'

Mr Homa said his trust had "the right capacity, expertise and experience" for the takeover."

Conservative MP for Newark Robert Jenrick said: "The management of Sherwood Forest Hospitals Trust have done a very poor job of serving our local people.

"This merger offers the opportunity for more stable finances, better management and better development and retention of clinical staff," he said.

The trust has been warned about both its finances and high death rates.

The interim head of Sherwood Forest Hospitals Trust Peter Herring said the merger with Nottingham was an opportunity for a "fresh start".

Mr Herring said it was "too early" to say whether there would be job losses after the takeover, but added any reduction in staff numbers should be covered by "natural turnover" of staff.