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Monitor has confirmed that Dorset County Hospitals is no longer in significant breach of its Authorisation. The trust was found in significant breach of a term of its authorisation in October 2009, due to a failure to comply with its general duty to exercise its functions effectively, efficiently and economically. This was as a result of deteriorating financial performance and operational efficiency.

Severe financial problems can threaten the long-term stability of a Trust, so it’s important for patients that they are fixed.

Since being found in significant breach the Trust has been under close scrutiny from Monitor and required to report to us on a regular basis. During this time the Trust has achieved a steady improvement in its financial performance. Having reported a deficit in 2009/10 and 2010/11, the Trust is forecasting a surplus for 2011/12. The Trust has also demonstrated improvements in governance; the Trust’s Board membership has changed significantly and there is evidence of improved Board level assurance and oversight of financial information.

Monitor’s Compliance Board Committee was satisfied that the Trust had delivered improvements against our concerns and is no longer breaching the terms of its Authorisation.

Notes

1. For media enquiries please contact Michael Moruzzi:  020 7340 2438 or Michael.moruzzi@monitor-nhsft.gov.uk
2. When a trust is authorised as an NHS foundation trust by Monitor it is required to comply with the terms of its Authorisation. These are published on Monitor’s website.
3. The intensity of our monitoring and the specific requirements we place on boards of foundation trusts reflect the risk of an actual or potential breach of an NHS foundation trust’s terms of authorisation.
4. More information about how Monitor regulates foundation trusts is available here: http://www.monitor-nhsft.gov.uk/home/about-monitor/how-we-do-it/how-moni...
5. Monitor was established in January 2004. It is independent of government and accountable to Parliament. Monitor’s functions and powers are set out in the National Health Service Act 2006.
6. Monitor is now on Twitter - follow us @MonitorUpdate