£100m deficit costs health chief his job

The chief executive of an NHS health authority facing a £100m deficit has been sacked seven months after being appointed to the post.

Mark Outhwaite, chief executive of the Avon, Gloucester and Wiltshire Strategic Health Authority had admitted in a report to his governing board last week that the authority would need to borrow from the new NHS Bank.

A statement by the health authority said yesterday: "Following discussions with the Department of Health, it has been agreed Mark Outhwaite will step aside within the next two weeks."

The move is a sign of the Government's tough new approach towards health authorities that fail to perform within their means. Mr Outhwaite was one of the 28 chief executives appointed to run the strategic health authorities created in England in April. Mr Outhwaite was previously chief executive of East Kent health authority and had acted as caretaker manager of West Kent Health Authority. A friend said yesterday: "He was extremely able, very bright, slightly idiosyncratic but highly regarded by colleagues. If he can't square it, who can?"

A spokeswoman for the health authority said it faced problems including ageing buildings and retaining staff, which had made it difficult to meet government targets, such as cutting waiting times. "They are problems of many years standing," she said.

Nigel Edwards, policy director of the NHS Confederation, representing managers, said many other health authorities were facing deficits and most reflected long standing problems.