Basildon Hospital is being forced to pay out thousands of pounds a month as agencies cash in on a national nursing shortage.

The situation has already led to the hospital trust overshooting its budget, and directors fear greater problems as the year goes on.

Finance director, Alan Whittle, said the trust is paying out £150,000 a month on agency staff.

The situation was made worse when nurses on the hospital's own staff were switched from weekly to monthly pay, driving many over to the outside agencies.

Now the trust is considering reverting to weekly pay packets for its nursing staff.

Non-executive director Diane Hale said hospitals all over the country were being held in an "almost blackmail situation", having no option but to pay agency rates.

Fellow non-executive director, Peter Wallis, agreed agencies were cashing in on the nursing shortage.

He said: "We are making savings on one hand and letting some private individual or company make money elsewhere. The more we pay out, the less we have for patient services. It is a worrying trend."

Now trusts in south Essex are banding together to negotiate a single contract with one agency to reduce rates. That would also reduce the risk of incompetent staff being sent to fill vacancies, said Ms Hallums.

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