THE trust responsible for running York Hospital will run out of cash in October, according to its chief executive.

In an email sent to York Teaching Hospital NHS Foundation Trust's executive board and senior managers, chief executive Patrick Crowley said the coffers would be empty in a matter of weeks.

He wrote: "For the first time in the trust's long history we will run out of cash and will have to enter the Foundation Trust Distressed Cash regime."

He told staff the trust had a deficit of £13.8m and would have to borrow money to make sure it could operate, incurring interest on the re-payments and further increase its costs and loans.

Sian Balsom, a manager at Healthwatch York, said local people needed urgent guarantees that patient safety and quality of care would not be compromised by the funding problems.

"We have previously raised concerns about the financial position of our local NHS. This latest development highlights the seriousness of the challenges we are facing,” she said.

"We urge NHS England and NHS Improvement to consider how they can invest in early intervention and prevention services to reduce pressure on our hospitals and support us in transforming our communities and the health and care system.

"York needs its fair share of funding to make this possible."

The immediate impact will see the trust placed under significant financial scrutiny by regulators.

However, Mr Crowley outlined in his email that a financial recovery plan was being put in place.