FINANCE: The primary care trust is anticipating it will miss its £32.5m savings target for 2010/11by £5.5m, revised forecasts show.
A report to the PCT’s January board meeting said this was a “significant improvement of over £4m” compared with the shortfall it was forecasting in November.
The improvement was mainly a result of agreements it had reached on contract settlements, and on the release of reserves and provisions, it said.
It added: “As the savings plans were designed to deliver an original surplus of £7m, this £5.5m shortfall would move the PCT into a £1.5m surplus, and this has now been agreed with the SHA as the revised Control total to be delivered at the year end.”
Other papers presented to the board said there were a number of risks to its forecast £1.5m surplus, which in a worst case scenario could result in a deficit of more than £4m.
January 25, 2011