JOB losses are feared after NHS Warrington exceeded its budget by nearly £13 million, placing a ‘significant burden’ on services next year.

Although the trust is predicting a £500,000 surplus for the end of this financial year, it had to rely on an £8 million bailout by strategic health authority NHS North West and £2 million from Warrington and Halton Hospitals Foundation Trust.

Bosses have already put a freeze on recruitment and said they will divert services from the hospital to the community in future to save more

A campaign to encourage people not to use the hospital’s A&E has also failed with the trust reporting a far higher level of people using the service following the recent bad weather.

Health chiefs also say that one patient’s drugs alone cost the PCT £3 million and are now working on a formal recovery plan to save money for next year.

Members of public sector union Unison fear the financial black hole could result in redundancies and service cuts.

A finance report, published on March 3, stated: “The consequence of these packages is to place a very significant financial burden on 2010/11.”

The PCT has been negotiating a number of price reductions and contract changes with other health providers for 2010/11 – some will need repaying until 2012.

Brian Morris, Warrington’s branch secretary for Unison, said: “The organisation seems to say it is forecasting a surplus.

“Yet to get to that surplus the board is going to have to borrow £13 million.

“There is also the likelihood that if the underlying deficit in the next financial year is not tackled then the overall deficit for the PCT will be much higher than the £13 million repayable.

“The only way the PCT can make savings is by cutting services and these will have to be savage cuts to get anywhere near savings of £13 million.

“People are going to see cut after cut in the services the PCT commissions.

“This could have a major knock on effect for jobs within the health sector and in support services.”

NHS Warrington said the financial year had proved challenging. A spokesman added: “Activity levels at the hospital continue to rise and demand on services is increasing and we have been working with our providers to manage this.

“Negotiations with providers around costs, which were higher than the contracted amount and rebates on payments in addition to a reallocation of funding, has placed the PCT in a position to break even.

“The fact that activity continues to rise, against a position of no growth in funding from 2011, means the PCT needs to focus its attention on achieving a sustainable financial platform.

“The PCT is taking the financial situation very seriously and is working on a robust recovery plan. We will continue to work with providers over the coming months to achieve this.

“Work has already started on renegotiation of all our contracts and we will be working with providers to affect changes across the health economy which will provide better value for money.

“Moving services which sit better in the community, out of a hospital, will improve the experience for the patient, as patients indicate that they want to be treated at home or in the community.”