Government support to be offered to struggling NHS trusts

Seven NHS hospital trusts are to be given an opportunity to receive government support to help them address serious issues with their financial organisation.

Trusts representing Barking, Havering and Redbridge, Dartford and Gravesham, Maidstone and Tunbridge Wells, North Cumbria, Peterborough and Stamford Hospitals, South London, and St Helens and Knowsley have been asked to meet four key criteria in order to benefit from these new Private Finance Initiative (PFI) arrangements.

They must show that they are facing exceptional problems beyond those experienced by other trusts, while also showing they have clear future strategies, are delivering viable, high-quality services and are creating productivity savings.

After passing these tests, the organisations will be able to access financial support of up to 1.5 billion pounds over the next 25 years.

Health secretary Andrew Lansley said: "We need to balance the accountability of the NHS at local level to live within its means on one hand with recognising that there is a legacy of debt for some trusts with PFI schemes."

This comes after a 100 million pound funding package for use by local clinical commissioning groups was outlined by Mr Lansley last month.