Royal Cornwall Hospitals trust is going to cut off nearly 300 jobs after it put to use a governments idea of a funding formula that incurred huge losses. Royal Cornwall Hospitals Trust is facing a mammoth cash crisis, that is amounting to debts of £8.1 million which might force it to close wards and operating theatres in addition to cutting jobs.
Market Forces Factor (MFF) has perhaps caused this downslide, because it works on the logic that it costs much less to remunerate the staff from rural areas. NHS staff is compensated with wages that follow the national wage scale and the difference caused the trust a huge financial strain, leading to debts.
Matthew Taylor, Liberal Democrat MP for Truro and St Austell, had indicated earlier about the need for an audit. In his words, 'Local wage levels are about 25 per cent below the national average. But health staff are paid on national pay scales, so the hospital does not cost any less to run.'The hospital would be getting over £10m extra without the funding formula, there would be no debt, and these cuts would not be happening.'
Unison, which stands for the rights of 1,500 workers at the hospital, has reiterated that it would not take this lying down and would put up a fight to salvage jobs.