ONE of Oxfordshire’s biggest health providers is being investigated for financial losses by a Government regulator.

And according to a nurse at one of Oxford Health NHS Foundation Trust’s biggest hospitals, it’s being “forced into a downward spiral”.

The trust runs mental health services, community hospitals and community nurses across the county including the Warneford Hospital in Headington.

But yesterday, watchdog for foundation trusts Monitor said that between April 2013 and March 2014 the trust recorded a £3.7m deficit.

According to Oxford Health’s accounts between April 2014 and March 2015, the trust is £14.8m in deficit, three times what it was the previous year. Its overall spend last year was more than £300m.

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In May, Monitor reported that foundation trusts across the country, including Oxford Health, had contributed to an annual deficit of £882m.

The trust is one of a number being investigated by the watchdog.

Regional director Paul Streat said: “Oxford Health lost money last year and the losses look set to continue.

“We know the trust has already been working hard to save money, but to date it hasn’t been enough to return the trust to a healthy financial position.

“We want to know what more it could be doing to be more efficient, and how local healthcare organisations could help it to improve its finances.”

The body has embarked on some controversial cost-saving initiatives, such as closing kitchens in community hospitals across Oxfordshire in favour of cook-chill meals.

It has also said that it could consider closing wards in the five-year plan, which outlines savings.

Rachel Coney, chief executive of patient group Healthwatch Oxfordshire, said: “I think it’s an obvious concern that a provider in our patch is not in control of its finances. We would like the trust to make a statement in plain English on what this means for patients.”

Oxford Health spokesman Lorcan O’Neill said: “We fully understand the need for Monitor to investigate whether our planning assumptions about cost improvement and efficiency are achievable.

“We are also pleased that they will be taking into account our existing levels of efficiency in assessing whether the funding of our services is commensurate with the levels of activity that we are delivering to meet the needs of the people we serve.”

According to Monitor, Oxford Health is supposed to slash £11m from its budgets between 2015 and 2016. But Oxford Health is only planning savings of £5.1m.

Ian McKendrick, communications officer for union Unison and nurse at the Warneford Hospital, said: “We would put the blame for the situation on the Government’s policy towards the NHS.

“Understandably there has been a squeeze in the number of agency workers used, but the trust is now moving towards a workforce crisis.”

In April the trust had a staff turnover of more than 13 per cent, and more than 20 per cent of staff who took sick leave cited stress and anxiety.

A Department for Health spokesman said: “We know the NHS is busier than ever and trusts are facing challenges. It is essential that all organisations in the health and care system maintain a tight financial grip and live within their means.”

Monitor will announce the outcome of its investigation once it is completed.

Oxford East MP Andrew Smith, said: “Oxford Health provides vital services to often very vulnerable patients as well as crucial community provision. “There comes a point when year on year cuts of this magnitude are bound to impact on patient care and the service to the public, which is something I will fight to defend.”