A HOSPITAL trust has been bailed out by the government after it racked up a £15 million unpaid bill with suppliers.

NHS Improvement has launched an investigation into the finances of Barking, Havering and Redbridge University Trust (BHRUT) after they took out an emergency loan from the Department of Health to pay a “significant” number of bills outstanding for more than 90 days.

Some suppliers have threatened legal action after the trust was forced to go to the Department of Health for the loan.

Auditors Grant Thornton and NHS Improvement will conduct the investigation.

BHRUT runs King George Hospital, in Goodmayes, and Queen’s Hospital, in Romford.

A spokesman for NHS Improvement said: “We can confirm we have opened a formal investigation into the finances of Barking, Havering and Redbridge University Hospitals NHS Trust.

“This kind of investigation is a key element of our role as a regulator, and will take into account the work and findings of the review being carried out by Grant Thornton, with whom we will be working closely.

“To avoid any perception of conflict of interest, the work is being led by a team independent of the NHS Improvement London region.”

The spokesman added the regulator was unaware of any patients harmed by the financial situation but vowed to seek assurances.

No timescale has been fixed for the investigation.

Matthew Hopkins, chief executive of BHRUT insisted patient care at the trust’s hospitals has not been compromised.

He said: “We have recently uncovered a significant short-term cash flow issue within our Trust.

“As far as we are aware at this time, there is no evidence of any impact on our patients’ care or safety, and no treatments or operations were affected.

“We are very aware however, of the impact this has had in some circumstances on our local suppliers and partners.

“We value them greatly. We would like to thank all our suppliers and partners for their continued support and patience, in helping us care for our patients - we couldn’t do our work without them.

“We have already resolved many of the outstanding payments, and will be taking steps to deal with the remainder as soon as possible.”

Activist Andy Walker, of Seven Kings, has been fighting to save the A&E at King George Hospital.

He blamed the Conservative government for the trust’s troubled state and accused them of underfunding the health service.

Mr Walker said: “The government’s grossly underfunding our hospital. Suppliers are threatening to stop supplying the hospital.

“It’s evidence the government’s trying to get a health service on the cheap.

“Staff are working too hard and making mistakes. It’s obvious central government isn’t being fair to our residents and isn’t funding the health service properly.

The population of north east London is expanding. We need more money to make sure hospitals are solvent and cancer and A&E waiting times are met.”