Chief's pledge over DCH's £10million overdraft (From Dorset Echo)
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Chief's pledge over DCH's £10million overdraft
11:00am Saturday 4th February 2012 in News
Dorset County Hospital’s finance chief insists it does not intend to use a £10million ‘overdraft’ facility it has set up with banking giants Lloyds TSB.
The Dorchester hospital has agreed a working capital facility with Lloyds that allows them to draw down up to £10million.
Director finance Bill Boa said the agreement is like an overdraft and is something all foundation trusts have in place.
The hospital has not previously been allowed one due to its poor financial ratings but now the hospital has been recognised as stable it has set one up.
Mr Boa said: “Every single trust has got one. The plan is at the moment that we never would but if we had a big issue, say we made a big purchase and needed to access cash, we would use it knowing we could pay it back in months.”
Mr Boa said the hospital had £3.8million in spare cash.
