HEALTH watchdog Monitor has launched an investigation into the finances of Arrowe Park Hospital.

The probe aims to understand why Wirral Hospital Trust is heading for an overspend of £5.5m.

A previous investigation by Monitor, concluded in March last year, found the trust was taking steps to improve its finances.

However, the steps taken have not improved the position as swiftly as the trust had projected.

Birkenhead MP Frank Field welcomed the investigation, attacking what he called the “ungovernability” of Arrowe Park.

Paul Chandler, regional director at Monitor, said: "The trust’s financial position has improved slightly in recent months, but they are still running a considerable financial deficit and we need to understand why.

"Our investigation will also look at whether the current problems mean there are wider issues with financial management at the trust."

Monitor will announce the outcome of its investigation, and whether any regulatory action is needed, “in due course.”

David Allison, chief executive of Wirral Hospital Trust said: "We are making improvement towards achieving long term financial stability and we are working hard to increase the pace of this progress.

"We have experienced very significant operational and financial pressures over the last couple of years. "The healthcare requirements of the population we serve are such that we are treating more and more patients, many of whom have serious or very complex conditions, and the number of patients requiring repeat or long term treatment is also increasing.

"In common with other large acute hospital trusts, while the demands on the services we provide have grown to unprecedented levels, we have also been required each year to achieve very considerable cost savings. The next financial year is even more challenging.

"My colleagues and I across the trust are disappointed that despite our best efforts our regulator has felt it necessary to open this investigation.

"However we remain determined to sustain an excellent service for our patients and our public, with safe, quality care at its core."

Mr Field told the Globe: "If Wirral University Teaching Hospitals NHS Foundation Trust was a private company it would have been wound up long ago.

"Monitor, thank goodness, is taking action against the ungovernability of Arrowe Park.

"Last year I asked the health secretary for help by enquiring into the governance of our primary healthcare.

“I stressed that it was important not simply to look at the Clinical Commissioning Group, but its relationship to Arrowe Park.

"When forced, NHS North West established an inquiry, but resolutely refused to examine the relationship between primary healthcare and the dysfunctional hospital trust.

"The wheel has come full turn.

“Wirral University Teaching Hospitals NHS Foundation Trust is bankrupt again.”

"I am writing to the health secretary with a copy of my previous letter asking him now to act and institute a comprehensive inquiry into the malfunctioning of health services that affect my constituents."