Primary care trust cash diverted into hospital deficits

Money from PCT (primary care trusts) budgets in London will be used to pay off £275m of debt from the capital's hospitals.

The 26 PCTs in London without debts will see 1.3% of their budgets go towards paying off the deficits of 10 hospital trusts and Hillingdon PCT. 

A further £304m will be top-sliced from NHS London’s budget to pay off the debts. NHS London predicts London trusts will have accumulated a deficit of £579m by 2011 if no action is taken.

NHS London said the move would ensure all trusts were on an ‘even keel’ and could start implementing Lord Ara Darzi’s ‘Healthcare for London’ proposals together.

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