South Tees NHS CCG put in special measures
A health body which has overspent by more than £8m has been put into special measures.
South Tees Clinical Commissioning Group (CCG) will now be placed under "enhanced scrutiny" by NHS England.
The CCG, which plans and commissions health care services in Middlesbrough and Redcar and Cleveland, will have to improve in a short period of time.
Chairwoman Dr Janet Walker said it had been "working diligently within the CCG to turnaround our financial position".
She said the CCG, which has a budget of more than £480m, was "disappointed" with its rating and with being paced in special measures, said the Local Democracy Reporting Service (LDRS).
'Financial black hole'
But it was "absolutely determined" to "take the necessary steps to get back on track", Dr Walker said.
NHS England has been approached for comment.
The CCG's deficit has been blamed on increasing elderly care costs, unplanned emergency care and high prescription spending.
Middlesbrough Council health scrutiny committee chairman Eddie Dryden said the CCG was "under immense financial pressure".
It had faced a "financial black hole" and it was important services were contracted appropriately, he said.
Dr Walker said the NHS was "operating in the most challenging financial environment it has ever faced".