Sutton's troubled social services could be fined £1.2million under new government proposals to penalise councils failing targets for moving hospital patients into residential care.

Currently hospitals like St Helier shoulder the financial burden of looking after people who have been treated but remain in wards because councils cannot find accommodation for them.

They are usually elderly and are a double drain on resources because they take up scarce beds needed for the sick.

Under government proposals to free-up beds, Sutton could soon pay £120 a day for every patient remaining in hospital for whom it has a duty to provide accommodation or care.

But social services spokesman Councillor Roger Thistle said the scheme will take cash away from other deserving groups: "There's a strong feeling in local government against this.

"It's clearly not in anyone's interest to keep people in hospital but it means money intended for other vulnerable people will go into the coffers of trusts developing hospital services."

Sutton's social services budget for 2001-2002 was more than £40million but the council claims it cannot afford the charges.

Finance officers have worked out the proposal could cost Sutton £1.2million a year based on recent figures for delayed discharges at St Helier.

They show there are currently around 50 patients at the hospital who have been treated but remain in wards.

This is due to a lack of spaces in care homes, council budget constraints and staffing issues.

Coun Thistle said Sutton and Epsom and St Helier NHS have been working closely to get half of them into care by April, adding: "This proposal will seriously undermine our good working relationship with the local NHS."

However bed-blocking, as it has been labelled, has been cited by Epsom and St Helier NHS Trust as a significant contributing factor to its £5million budget deficit.

Trust chief executive John de Braux said: "Over the last year between 50 and 80 beds have been occupied by patients who would have been better cared for outside of hospital.

"Clearly this level of delayed transfer has adversely affected our ability to manage our resources effectively."

January 28, 2003 11:00