WHIPPS Cross University Hospital Trust has launched emergency financial measures, including asking staff to work for free, after notching up a £4.5million deficit in just five months.

All staff at the Leytonstone site have been sent letters asking them to voluntarily give up their paid holiday time and/or take unpaid leave in a desperate effort to balance budgets.

It also urges them to think about "perform[ing] additional unpaid sessional duties".

It comes after the revelation that pregnant women in labour have on several occasions this summer been turned away from the hospital's maternity unit because it has not been able to cope with demand.

Responding to the letter, a midwife who did not want to be named told the Guardian: "Our jaws are on the floor. We're astonished and outraged.

"Many of us have already accumulated weeks of lieu days for all the unpaid overtime we do and there are no signs we'll ever get it. Now this."

She added that while it was not unheard of for maternity units at other struggling hospitals to turn women away, it was "very unusual" for Whipps.

She said: "We're under a lot of pressure and mistakes could be made. The managers just haven't got the resources they need and they know it."

The trust says that the ratio of midwives to patients had increased and the service is improving.

But board meeting papers paint a bleak picture of the hospital's finances.

According to the latest publicly-available figures, in the four months to July the hospital missed its saving programme target of £5.3million by £1.8million.

This was coupled, at the time, with a deficit of £3.4million, above a predicted £2.3million shortfall.

On top of this it also has a £23million historical deficit and has failed to break even for the last three years.

Trust meetings for September and October are being held behind closed doors and the agendas will not be made public.

A spokeswoman said this was decided months in advance and is not related to the latest financial issues.

The letter to staff, which is from chief executive Cathy Geddes, states that "the trust is facing unprecedented and demanding financial challenges in 2011/12 and beyond”, but adds that the sacrificing of annual leave will be “a one-off in 2011/12".

A spokeswoman said the executive team of the hospital would be giving up two days of annual leave before the end of the financial year.

Consultants are also being asked to work an extra session each month, she added.

In a statement to the Guardian, Ms Geddes said: "Staff across the Trust are responding positively to the measures, and to our efficiency plans.

"We recognise that many people already go the extra mile and deliver over and above their job requirements.

"By working together, we will all be helping to ensure that we can put maximum funds into our frontline services.”

The hospital is currently attempting to merge with Barts NHS Trust and Newham Hospital Trust in an attempt to gain foundation status.

The hospital has previously argued that the merger will open up extra funding, allowing it to clear its historical deficit.

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