Nuneaton's George Eliot Hospital is at risk of plunging more than £2 million into the red after the NHS postponed a range of operations.
Hospitals earn money for every patient they treat and every operation they carry out.
But NHS chiefs in Warwickshire have decided to delay hip, shoulder and knee replacements, cataract surgery and tonsillectomies to avoid running up huge debts themselves.
New figures presented to bosses at George Eliot this week show how the controversial policy is now passing on those money woes to hospitals.
In particular George Eliot is now struggling to find the money it needs to recruit and train enough qualified nurses to cover its hospital beds.
Dawn Wardell, director of nursing, told the board the hospital should have a ratio of 1.2 nurses per hospital bed, and 60 per cent of those should be fully qualified.
But she said that would require £1.1 million of investment – money the hospital cannot currently afford. As a result George Eliot has to keep spending £1 million per year on agency nurses, further compounding its financial difficulties.
NHS Warwickshire has stopped some treatments and postponed other ‘non-urgent’ procedures until the new financial year in April to save money. It claims the controversial measures are vital to stop it plunging £8 million into debt after a summer surge in routine operations.
Former health minister and north Warwickshire MP Mike O’Brien warned the “beggar my neighbour” policy would hit George Eliot hard.
And the latest figures appear to support his claims. The hospital lost nearly £1 million in November and December after the cut backs began.
Interim chief executive Chris Bradshaw said George Eliot lost more than £600,000 in December alone, largely due to delayed operations.
READ MORE 
Posted: Mon Jan 31, 2011 1:09 pm