HOSPITAL bosses have been ordered to tackle a £17.8m deficit.

City Hospitals Sunderland NHS Foundation Trust has been instructed to produce a financial recovery plan following an investigation by the regulator Monitor.

Monitor said there were “reasonable grounds” to suspect the Trust had breached its licence to provide NHS-funded healthcare.

Regional director Paul Chandler said: “This trust provides crucial healthcare services to the population of Sunderland, as well as some more specialist services to a wider patient population and it is vital that the trust resolves its financial problems so that it can continue to provide those services on a sustainable basis.

“We expect the trust to develop a credible financial recovery plan and then make sure that plan is delivered.”

The Trust runs Sunderland Royal Hospital and Sunderland Eye Infirmary, plus other facilities.

It expects a £17.8m deficit by the end of 2015-16, even following savings of £13m.

A Trust spokesman said: “We have an excellent track record of delivering savings year on year – almost £35m in the last three years, however, the reality is it is becoming increasingly difficult to identify those additional cost savings going forward.

“The board has been very open and honest with the regulator, Monitor, from the outset and advised them of our forecasted financial deficit some time ago.”