Peterborough Council is chasing up £1.4m worth of debts from Cambridgeshire and Peterborough Clinical Comissioning Group.
It comes after the CCG reduced its debt to the authority from almost £16m.
A Peterborough Telegraph report detailed how both bodies had been under financial pressure, with the CCG having to cut services to manage debts.
A council spokesperson told the local news outlet: “The council has been and will continue working closely with senior officers at the CCG to resolve debt balances outstanding to the council. These had reached almost £16 million during 2019/20, but there has been engagement and a number of large payments made by the CCG to reduce this debt.
“On review of the financial records held by both parties some discrepancies and errors were found, and as a result the council has raised credit notes to correct these. Work is still ongoing with the CCG at a strategic and operational level to ensure the risk in relation to this debt it closely monitored and managed.”
While a CCG spokesperson added: “The CCG continues to work closely with Peterborough City Council to resolve any outstanding financial debts between our organisations and ensure these are managed and processed accordingly.”