The government may have to raise taxes in order to fill a 10-billion pound blackhole in the NHS budget by 2020, according to a new report.
The Chartered Institute of Public Finance and Accountancy says the long-term financial plan for the health service is already outdated and that the quality of care could suffer.
It's warning new charges, rationing of care or higher taxes may have to be introduced.
The University Hospitals of Morecambe Bay NHS Trust is expected to record a debt of £39.9 million by the end of the financial year, the equivalent of 14% of its turnover.
Bosses at UHMBT are now implementing a strict cost-cutting programme in a bid to reduce spending by £12 million this year, though they claim it will not affect the quality of patient care.
Aaron Cummins, deputy chief executive and director of finance at Morecambe Bay NHS Foundation Trust, said: "As with many other Trust’s across the country, growth in the deficit over the past year has been driven by a number of factors including: additional staffing to satisfy safe staffing guidance; premium costs of agency posts needed to deliver safe services; reduced funding available for winter pressures; the increased costs of outsourcing some activity to deliver national waiting time targets; and costs of responding to actions required for the trust to come out of special measures.
"While measures are being implemented to lower the trust’s deficit, patient safety and care remains the top priority and will not be compromised."
Jim Mackey, Chief Executive of NHS Improvement, said: "When we consider where we were six months ago, NHS providers have done a great job in reducing the planned deficit.
"The key now is for us all to work together to make the necessary improvements in 2016/17, to reduce any variations in the quality of care for patients, and to bring the NHS provider sector back into financial balance."