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09
Apr 2020
Harrogate hospital has £4.8 million debt written off
Harrogate District Hospital bosses have welcomed the government's decision to write off its £4.8 million debt.
The hospital took out the multi-million-pound loan to pay back its suppliers more quickly but said the "reset of finances" was helpful going forward.
107 hospital trusts have an average of £100 million in revenue debt, with the two trusts with the highest debts reaching a combined total of over £1 billion.
In total, the government will write off £13.4 billion of NHS debt to ensure hospitals have the "necessary funding and support to respond to coronavirus."
Under new rules, hospitals in need of extra cash will be given it with equity, rather than needing to borrow from the government and repay a loan.
Jonathan Coulter, finance director at Harrogate and District NHS Foundation Trust, said:
The government has said that while many NHS trusts manage strong finances, some took out loans to plug financial gaps in their day-to-day revenue or capital infrastructure budgets.
Health Secretary Matt Hancock said:
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