FINANCE: In October there were six contractual key performance indicators which breached targets at Birmingham Community Healthcare Trust.
Three related to referral to treatment time in the dental hospital and three related to the main community contract.
Of the reported breaches only one indicator is currently at the remedial action plan management stage. At this stage there are no applicable financial penalties.
However, based on the monthly sum of the total contract value, in the unlikely event of continued breaches, a penalty of up to 2 per cent could be applied per failure on any action on the remedial action plan, up to a maximum of 10 per cent (5 actions failed).
Based on £157,000,000 contract value and the monthly sum as an example, 2 per cent equals £18,458 and 10 per cent is £92,292. The consequence of two breaches on the dental contract would incur a potential penalty of £36,916 per month.
Birmingham Community Healthcare Trust, performance report
2 December 2011