A CRACKDOWN on overtime and more spending checks are being planned to tackle multi-million pound losses at Colchester’s hospitals.

The Colchester Hospital University NHS Trust, which has budgeted for a £15.9million deficit this year, lost £2million in August alone.

During the month, the trust was forced to pay out £289,000 in fines for missing performance targets.

From April to August, the trust was fined £1.46million, 62 per cent more than was set aside in its budget to pay penalties.

Interim finance director Andy Morris, who joined the trust this month, has announced plans to introduce greater checks on spending by executives.

Mr Morris also proposed more scrutiny of overtime, to make sure it is “money well spent”, while concerns were also expressed about the “premium” paid on salaries for interim and consultant staff.

The trust has forecast a £15.9million deficit in the current financial year, but has lost £11.2million in the first five months alone.

But Mr Morris, who formerly worked in the same role at Basildon and Thurrock hospitals, is confident the trust can still meet its target.

He said: “There is a cost improvement programme and to hit that £15.9million figure we need to make further savings of £8.9million.

“At the moment I would say we are close to plan.

“Quality for patients must come first and I am not a slash-and-burn merchant. We are not prepared to compromise in terms of patient care.”