Leicester hospitals are so short of cash that health bosses have warned staff they might not be paid in August.
The government’s demands for “efficiency savings”, combined with last winter’s swine flu crisis, have helped create a financial crisis.
Malcolm Lowe-Lauri, chief executive of University Hospitals of Leicester NHS Trust, describes the Trust’s finances as “catastrophic”.
The stark admission is in a memo he wrote to senior managers.
He writes, “There is a real issue about whether we will be able to pay our staff by August and September if the present run rate [spending] continues.”
Workers fear that management will use the crisis, and the bosses’ drive to become an NHS foundation trust, as an excuse to slash staff and drive through more cuts.