FINANCIALLY stricken NHS Harrow is expecting a £36 million bail-out labelled “Father Christmas economics” by a councillor.
The trust, which admits its financial challenges are “probably” the biggest in London, does not yet know how much of the cash, stumped up by neighbouring boroughs, will have to be paid back.
The lifeline, made up of £15.9m this year and £20m next year, will reduce the impact on front line services, allowing the organisation, formerly Harrow PCT, to take more time to reduce costs by increasing efficiency.
Rahul Bhagvat, a spokesman for the organisation, said: “To recover our position in one year would mean significant cuts to front line services, doing it over two gives us time to increase the efficiency of services in a planned way.
“This is the sensible approach going forward.”
But there are still fears the impact of its poor finances could be passed on to GPs when PCTs are abolished by the Government in 2013.
Bosses admitted yesterday it could be “well into 2013” before NHS Harrow recovers its financial standing.
Councillor Barry Macleod-Cullinane, deputy leader of Harrow Council's Tory Group, said: “This is not just maxing out your own credit card to pay off your bills but maxing out someone else's and not telling them.
“I just don't understand how they can think this is sensible. This is Father Christmas economics.”
NHS Harrow also has to finalise contracts with a series of organisations covering services from A&E to mental health.
These must be agreed by the end of the month and managers say the contracts could either help them save cash or leave them with an even greater black hole to fill depending on the outcome of negotiations.
Mr Bhagvat said: “In line with national NHS policy, GP consortia will have their own budgets from 2013/14. They will not be responsible for resolving PCT legacy debt that arose prior to 2011/12.
“The PCT must ensure that through planning in 2011/12 and 2012/13, all existing legacy issues are dealt with.
“During this period we expect the developing GP consortia to work closely with NHS Harrow to ensure that financial control and balance is maintained to prevent PCT deficit in those years.”
The £20m due next year is expected to be agreed at a meeting this afternoon.
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