A DAMNING report has warned that the Dorset County Hospital could face running out of cash to pay staff.

Bosses at the Dorchester hospital are on the receiving end of a barrage of criticism in a report obtained by the Dorset Echo.

The Audit Commission’s review of the hospital’s financial management and governance has raised concerns over the running of the hospital over the past year as it tackles a financial deficit of more than £5million.

It also questioned the large outlay on interim directors and consultants.

The hospital board also comes in for criticism for potential breaches of European Union regulations in the way it appointed consultants and the way it handled the termination of contracts with previous employees.

The auditor also raises concerns that the board has not put into place plans that will effectively lead the hospital to financial recovery.

The report goes on to say: “The trust, like any other business, requires enough cash to pay its staff and suppliers as these debts fall due.

“Because its expenditure and consequent cash outflow is greater than its income and cash inflow, the trust risks running out of cash.”

The auditor has produced a list of 11 recommendations to the trust board.

They include making urgent arrangements to address the trust’s predicted cash shortfall and ensuring managers and clinical leaders have the skills to implement the recovery plan without outside support.

Hospital governor Derek Julian said the findings in the report gave cause for concern.

He said: “Speaking for myself, I am as concerned as anyone that we get the hospital on a sound financial footing and the issues raised in the report obviously cause concern.

“I represent the people of Weymouth and Portland who elected me as their representative on the foundation trust and I am concerned that nurses have written in the paper about front line services being cut.

“Clearly the hospital must get back on a sound financial footing and I am concerned at the criticism in the report.”

Mr Julian stressed that, while the top management at the hospital had come in for criticism, staff on the frontline had been doing all they can to keep up the standard of patient care.

He said: “People are working their socks off to maintain services and staff clearly work hard to make it one of the best hospitals on the South West.”

Eve Godfrey, who worked at the hospital as a secretary for 16 years, said the fees paid for interim directors and consultants were ‘disgraceful’ and would have been much better spent on frontline resources.

She said: “In my own experience there always seemed to be money to bring in top management and admin staff and there was never enough money to add to the nursing.

“The NHS is about doctors and nurses and if every department was left alone to run themselves like they used to be there wouldn’t be the need for all the admin staff and management staff at the top.”

A spokesperson for Dorset County Hospital NHS Foundation Trust said: “Our governance arrangements have been strengthened significantly since this report was written. We now have a robust recovery plan and a new permanent executive team will be in place by September, putting us in a strong position to tackle our financial issues and secure the future of hospital services for our patients.”