A patient group has called for “fairer deal” for Croydon’s NHS funding after the borough’s entire health service was placed into financial special measures.

Healthwatch Croydon suggested the decision to thrust the borough’s clinical commissioning group (CCG) under the spotlight of a new regime to “restore financial discipline” would not address historic funding shortages.

The CCG and Croydon Health Services were among 14 providers forecasting "significant deficits" for 2016/17 chosen by NHS England and regulator NHS Improvement to fall under the new special measures, it was announced last week.

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The CCG will be ordered to produce and implement a financial recovery plan and improve its governance, while senior health service managers will be parachuted into Croydon Health Services to inspect financial, clinical and staffing arrangements and agree a detailed strategic plan.

Dr Anthony Brzezicki, clinical chair of Croydon CCG, last week described the group's financial position as its “greatest challenge yet” and said the local health service had been “historically underfunded”.

NHS England allocated the CCG £475.4 million this financial year, almost six per cent more than in 2015-16, but the group is forecasting a £9.9m deficit.

Charlie Ladyman, chief executive of Healthwatch Croydon, said the service did not have “adequate finances” to support such a “large and diverse borough”.

She added: “We are aware that the CCG inherited a deficit that they have been aiming to address.

“We understand the challenge and reiterate a point I made some months ago that there needs to be fairer deal for Croydon in terms of money available for supporting services for such a large and diverse borough - England’s 13th largest by population.

“We would support the CCG in ensuring Croydon receives the right allocation for its needs.”

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Ms Ladyman made similar comments in May after the Government’s public accounts committee published a report that found cost-cutting and “unrealistic” targets set by national bodies had resulted in staffing shortfalls and a reliance on agency staff in NHS trusts.

She called for Croydon receive funds “proportionate to the borough’s needs”.

A spokesperson for NHS England said: “NHS England is using its powers of intervention in a number of CCGs to ensure financial and operational delivery is secured in 2016/17. “This is part of an ongoing assurance process to ensure CCGs are in the best place to deliver high quality and safe health care at a time of increased financial pressure and rising demand.

“In 2016/17, all London CCGs received allocations within five per cent of their target and are therefore all considered appropriately funded.

“Croydon CCG has received £25.8m cash growth in funding in 2016/17, an increase of 5.86 per cent compared to the average growth for London of 3.60 per cent.”

But while the funding was two per cent higher than the London average, the CCG's returned a £11.9m deficit.

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Mr Brzezicki said: “Since Croydon CCG was established, we have been working to turn around the hugely challenging deficit we inherited. The local health service has been historically underfunded which has also contributed to our financial position.

“We need to focus our resources where we can have the biggest impact on people’s health and well-being whilst continuing to improve the quality of local services.”