A hospital trust in the North East has again failed to fully comply with the terms of its NHS licence.

All NHS foundation trusts are required to self-certify each year as to whether or not they have complied with the conditions of the licence they need to have as a provider of services.

The South Tees Hospitals NHS Foundation Trust said it could not meet a specific condition relating to systems and processes for good governance, declaring that it had insufficient evidence to enable it to comply.

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A hospital trust spokesman said there were restrictions on its licence, which had been in place prior to 2019, resulting from the trust’s structural deficit.

This was linked to a historic PFI (Private Finance Initiative) scheme used to build the James Cook University Hospital, in Middlesbrough, an agreement which last year cost the trust £65m.

Repayment amounts increase every year under the agreement until a final payment is due in 2034.

The spokesman said inflation would cause the bill to rise by another £5m this year.

By the time the final payment is made in 2034, the hospital will have cost more than £1.5 billion to build and maintain since it opened in 2003.

Providers are tasked with carrying out assurance for the NHS that they are in compliance with three main licence conditions.

The trust said the work required had been undertaken by its audit and risk committee who took into account a financial recovery plan previously agreed.

A spokesman for NHS England said: “The self-certification process for NHS Foundation Trusts and NHS Trusts provides assurance that NHS providers are compliant with the conditions of their NHS provider licence. 

“Where organisations declare non-compliance with particular licence conditions this is reflected in the regulatory assessment and any resulting support made available in response. 

“Sometimes the challenges faced by organisations can be longstanding and linked to structural factors that require strategic solutions to address and which can take a number of years to fully resolve.”

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The NHS can take action against providers of healthcare services if they are deemed to be in breach of a licence condition, or a requirement to provide information, or if an organisation is providing services without holding a licence entirely when it is required to do so.

Last month the South Tees trust was revealed as moving from ‘requires improvement’ to being rated ‘good’ overall following a latest inspection by the Care Quality Commission.

It is the South Tees area’s biggest employer, having more than 9,000 staff, and provides services for about 1.5m people.