THE cash-strapped organisation running Worcestershire’s three major hospitals has fallen behind its plans to work its way back into the black just two months into the financial year.

Worcestershire Acute Hospitals NHS Trust’s accounts have been in a dire state for some time, with the organisation ending the 2014-2015 financial year with a £25.9 million deficit – more than double its forecast at the start of the year of £9.8 million. And the organisation, which runs Worcestershire Royal Hospital, Kidderminster Hospital and Redditch’s Alexandra Hospital, has forecast it will be £31.3 million in the red by the end of March next year.

But figures for May show the trust fell behind its plans by £1.3 million and is already £8.4 million in deficit just two months into the year.

The shortfall was revealed in a report presented by interim director of finance and information Colin Gentle at a meeting of the trust’s board this morning, which showed it was the result of a combination of factors, including almost 12 per cent of the organisation’s pay bill in May – more than £3 million – going to expensive temporary staff, the highest amount in its history.

An increasing amount of so-called bed blockers – patients ready to be discharged but left in hospital as a result of a lack of social care or community hospital places – also cost the trust a massive £1.2 million last month.

The organisation was also forced to pay out £700,000 in fines for missing performance targets such as the amount of A&E patients waiting longer than four hours for treatment and operation waiting times – although this had been reduced by £500,000, with negotiations in progress with the county’s clinical commissioning groups around how much the trust will have to pay in total.

However, the trust was able to claw back £600,000 as a result of overall pay costs being lower than predicted.

The organisation has previously said this year’s predicted deficit is part of a larger plan to turn its fortunes around over the next few years, which include making £15.6 million in savings this year. Last year the trust was able to make £14.3 million savings through a number of measures.

As a result of failing to balance its budget in the last financial year the organisation will – for the second year in a row – be referred to the Secretary of State for Health under section 19 of the Audit Commission Act 1998, as is routine for any trust which reports a deficit.