AFTER finding itself in financial crisis two years ago, St Luke’s Hospice has pulled off an incredible turnaround, securing the future of its vital palliative care for mid Cheshire residents.

For thousands of people in the mid Cheshire area, St Luke’s Hospice in Winsford has a special place in their hearts, having provided end-of-life care for terminally ill family members.

That’s why when the Guardian reported in January 2017 that the hospice was in financial crisis and under investigation by the Charity Commission, the response from the community was staggering in the form of both shock and support.

At the time, the hospice was spending far more than it was bringing in and the problem was getting worse by the year. In 2017, St Luke’s was £700,000 in the red and six senior figures had all resigned in less than a year.

The problem got worse before it got better and at its lowest point in 2018, the hospice recorded losses of £1.13 million.

Now, for the first time since 2013, the hospice’s income has exceeded its spending, having gone from a deficit of £1.13 million, to a surplus of more than £250,000.

Neil Wright, who became the hospice’s new CEO in December last year, said: “Having recently joined St Luke’s as CEO, I am delighted that our 2017/18 audited accounts show our community we have successfully returned to a positive financial position. This considerable achievement, acknowledged by the Charity Commission, will enable us to continue to deliver and develop the special care that we provide for local people.

“Last year, St Luke’s celebrated 30 years of Hospice care and at our recent Annual General Meeting, we started to lay the foundations for the next 30 years by announcing the start of our strategy to develop a new vision of the future.

“I feel very fortunate that the hospice has such loyal and generous support from the community and thank them all for their ongoing contributions.

“We are also blessed with dedicated staff and volunteers who enable us to deliver our much-needed services. We remain committed to ensuring our care is responsive and effective for local people.”

The hospice’s accounts, which were released this month, show that there are several reasons for the sudden turn around in fortunes, despite receiving £40,000 less than the previous year in grants.

But one of the main reasons is clearly the scaling back of big spending on ‘lavish’ fundraising projects that the hospice came under fire for two years ago.

In 2017 the Guardian was contacted by nurses working with patients at St Luke’s Hospice, who were concerned for the future of the hospice.

They criticised the then-CEO Andrea Ladeira for bringing in a new approach of investing more money in elaborate fundraising projects which failed to raise enough funds to justify the outgoings.

One scheme that was cited was the idea to give away a personally customised Bentley as a raffle prize.

One of the nurses said at the time: “Huge amounts of donated funds were put into schemes such as the Bentley auction, which went pear-shaped and we lost money.”

The latest accounts show that the hospice cut back £400,000 on raising funds from the previous year.

But the area it made the biggest cutback was in staffing costs. The hospice lost 17 members of staff and saved £700,000 in salaries.

In his financial review, St Luke’s Hospice chairman Mike Ridley referenced the avoidance of lavish spending as a main factor for the unprecedented balancing of the books.

Mr Ridley said: “Within a 12-month period the hospice improved its financial performance by £1.4 million. A number of factors have contributed to this significant improvement including the full year impact of the Organisational Change Programme and no funding of large projects or investments over and above core activities.”