FINANCE: Guy’s and St Thomas’ plans a £53.2m savings plan to generate £30m for capital investment

The trust said in a finance report the sum equated to 8 per cent of expenditure “on which savings could be made”.

The NHS 4 per cent efficiency target equates to £27.9m with the loss of £7.4m in Project Diamond income, a fund intended to ameliorate the loss of traching income.

In March the board was told the trust’s finance would see an income change of £4.4m after emergency readmissions charges of £10.4m wiped out a £6m increase in the Market Forces Factor, that reflects the effect of a more expensive location on a trust’s costs.

The report said: “Since the board meeting trust officers have negotiated with the Lambeth, Southwark and Lewisham [commissioner] Alliance changes to the national emergency readmissions rules.

“The Alliance has agreed to the Trust’s proposals to exclude emergency readmissions following elective admissions: renal and gastroenterology/endoscopy services and to exclude all critical care and other add-on costs charged to PCTs in addition to the spell tariff from non-payment.”

Enter the inaugural HSJ efficiency awards – designed to celebrate those initiatives which have improved quality and delivered cost savings – at www.hsjefficiency.com