FINANCE: The west London primary care trust agreed to cap any overspend on their contract with Ealing Hospital Trust to £3.5m.

A finance paper submitted to the board of the commissioning body said: “If this agreement had not been reached an additional over spend of at least £3m [was] very likely to arise in quarter four.”

The report said the PCT was now predicting a “worst case scenario” of a £1.5m deficit at year-end and a “best case scenario” of breakeven or a small surplus.

It said: “Additional savings may need to be found by 31 March 2011 to provide flexibility at year-+end to report a breakeven position. Additional savings are identified in the contingency plan.”

The report also predicted £2.2m in challenges to bills from acute providers.